We are delighted to have achieved a net reduction in tax of over £2,500 for a group consisting of a partnership and a company. This has involved calculating the commercially justifiable level of recharge between the two parts of the business, and ensuring that the profit shares within the partnership were also justifiable.
With fees of less than 20% of the total saved, our client is delighted. Many other accountants would not have gone the extra mile, and would have left them exposed to HMRC review of the relationship between the company and the partnership. While we cannot guarantee no HMRC interest, at least our client knows that the recharges are commercially based, and defensible.