Valuing Your Business
We undertake valuations for self employed clients, or clients in a partnership (normal or limited liability partnership) looking to sell their business to their own limited company to save tax.
What do we do?
- We review your past figures and complete your latest self employed accounts
- We need to value any stock and assets at the date of the disposal
- We need to forecast anticipated 2012/13 performance if no limited company was formed
We will review all the above information received to maximise your relief and prepare a valuation report and agree/negotiate with HM Revenue and Customs including:
- Sales agreements
- CG34 form
- Capital Gain Tax Calculation
- Valuation Report
What are The Benefits of Doing This?
- Benefit from lower limited company tax rates eliminating 9% national insurance over £7,605 profits
- This goodwill is allowable over several years as an expense to lower company profits.
- The new limited company owes you personally goodwill money you can take out tax free
What is the Cost of Doing This?
- Capital gains tax in January 2014 of 10% above £10,600 with entrepreneurs relief
- We will charge from £900 plus vat – quotes on application
- 1 off Company set up costs + extra accountancy fees of £500- £800 per annum
Estimated Benefit Calculation assuming Profits and Valuation of £40,000
-
£2,900 saving in Business Tax on £40k profits PER ANNUM
- If self employed tax will be around £9,400
- If Limited Company tax will be around £6,525
- £1,600 per year for 5 years Limited Company Saving in CorporationTax
- £11,600 Personal tax saving – 29% on £40,000 timeframes would depend on profits made and dividends.
Please note all the above figures are estimates as a guide to potential clients.
Request more information
To find out how Matthews Business Associates can help you make more money, please use the contact form below, or contact us on 020 8337 0775.
Call us on 020 8337 0775 for a no obligations consultation about your business.