Navigating the Business Journey with Confidence

Alex runs a thriving design consultancy. Like many SME owners, Alex is deeply involved in every aspect of the business — from client relationships to hiring decisions. But one thing Alex never leaves to chance is tax planning.

Rather than treating taxes as a once-a-year obligation, Alex sees them as part of a broader strategy — a way to align financial decisions with long-term goals. It’s not about loopholes or last-minute scrambles. It’s about clarity, structure, and foresight.

The Compass: Strategic Thinking

Every quarter, Alex sits down with a trusted team: an accountant, a legal advisor, and an Independent Financial Adviser (IFA). Together, they use a simple but powerful tool — a Tax Planning Thinking Checklist — to guide their conversations.

Alex’s Tax Planning Thinking Checklist

This checklist helps Alex and the team explore opportunities and avoid common pitfalls:

Business Structure & Timing

• Are there associated companies that affect tax efficiency?
• Is the current accounting date optimal for managing profits and capital gains?
• Would incorporation or restructuring unlock future benefits?

Investment & Capital Allowances

• Are we making use of Annual Investment Allowance and other capital allowances?
• Have we considered allowances for building purchases or environmental investments?
• Are we eligible for R&D incentives?

Growth & Transactions

• Are we planning any acquisitions or disposals?
• Are management charges between entities structured appropriately?

Profit Extraction

• Are we balancing dividends vs. bonuses effectively?
• Are we using pension planning, training costs, or benefits in kind wisely?
• Have we considered family involvement — children, spouses, or civil partners — in a compliant and fair way?
• Are we steering clear of tax avoidance schemes that may be risky or unsuitable?

Property & Assets

• Is the business using owned property efficiently?
• Are we making the most of home office arrangements?

Directors & Shareholders

• Are directors’ loans being used appropriately?
• Have we reviewed termination payments and retirement planning?
• Is share ownership structured to reflect contribution and value fairly?

Good Practice & Compliance

• Are we maintaining good record keeping to support all claims?
• Are we meeting planning conditions that make our structure robust?
• Are we avoiding disproportionate pay or dividend waivers that could raise red flags?

The Map: Structuring for Success

At one point, Alex considered launching a second company to house a new service line. But before moving forward, the team explored the checklist and realized that having multiple associated companies could dilute certain benefits and increase administrative overhead. Instead, they restructured internally, keeping the business lean and focused.

Timing Matters

Later, when Alex planned to sell part of the business to a partner, timing became crucial. The checklist helped them prepare — from reviewing capital gains timing to ensuring the structure supported potential reliefs.

The Team Behind the Journey

Alex’s success isn’t just about good instincts — it’s about having the right people in the room. MyController brings clarity, the legal advisor ensures compliance, and the IFA helps align business decisions with personal financial goals.

Together, they form a planning team, not just a support team.

Final Thoughts: Planning is Power

Tax planning for SMEs isn’t about dodging rules — it’s about designing a business that works smarter. Like Alex, owners who plan ahead, ask the right questions, and build the right team are the ones who thrive.

Whether you're expanding, restructuring, or simply refining your operations, remember: the best tax strategies are those that stand the test of time.

Call MyController today to see how we can help!