Cavetta Consulting could help put your tax relief spend back into your pocket
HMRC actively looking to save you significant spend on your tax bill?
Cavetta Consulting, a local capital allowances firm, showed Donald Butchers in Hyndland exactly how to claim this legitimate business relief.
Alan Cadden, director of Cavetta Consulting, used his fifteen plus years’ of capital allowances surveying experience to reduce the tax bills of Kevin and Danielle McMillan, owners of Donald Butchers, allowing them to expand their existing business in Uddingston and open a new state of the art facility in Hyndland.
This was made possible by Cavetta Consulting (working alongside the company’s accountant) identifying and valuing tax saving fixtures incorporated within the new production area and offices at the Uddingston store and in the redevelopment of the Hyndland store, past the initial design stage and extending all the way through to delivery of the project.
Property Tax Relief
Danielle and Kevin inherited the Uddingston Main Street shop from Danielle’s great uncle Marshall in 2013. From visiting markets at five-years-old, to being taught the different breeds of cattle on road trips, Danielle knew she would one day take her uncle’s place. After Danielle and Kevin left school, Kevin began working for Marshall as his apprentice and stumbled upon a career he loved.§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§
In 2020, the couple decided to expand the 116-year-old Uddingston shop by converting the flats above it into a production area and office space. Their accountant advised the pair to appoint a specialist surveyor to prepare a capital allowance claim. In the process of trying to find a local firm that could help him, Kevin discovered that Alan, a frequent customer to their store, had helped a number of businesses successfully claim this property tax relief. After a year in planning and design, the refurbishment was underway and with the final cost totalling almost four times the initial budget, Alan was able to significantly reduce the pain by slicing a hefty chunk from their tax bill.
In legally reducing the company’s corporation tax bill, money was then available to aid the business expansion. Kevin said, ‘The relief on tax costs from our Uddingston store has been put back into the business to cover the costs of refurbishment and we have just brought in an apprentice for Hyndland, which wouldn’t have been possible without help from Alan.’
With the Uddingston extension boasting a modernised bright environment, office, staff canteen, and additional production space, the store has moved with the times and offers staff and customers an inviting place to work and purchase from.
Underclaiming Tax Relief
Surprisingly, it has been reported that only 30 per cent of eligible businesses claim this tax relief. Even more surprising is that the tax man encourages businesses from sole traders to large corporations, to claim it. However, whilst accountants can easily claim if for movable fixtures such as desks, chairs and computers to name a few, ‘The main difficulty in determining whether an asset qualifies as plant or machinery comes with assets incorporated into buildings’. CA20006 – HMRC Capital Allowances manual.
The problem accountants face is that the tax relief is buried within the building works and they need a chartered surveyor who has knowledge of buildings and valuation techniques, to identify and value the tax deductible fixtures correctly.
The main challenge Alan faces is ‘people think it’s too good to be true: that they can write all this tax off. But new tax reliefs introduced a few years ago mean that many shops, bars, and restaurant fitting out their stores are discovering that the whole cost of their fit outs are in some cases 100 per cent tax deductible.
‘And the benefit to the business, in money not going to the tax man that they can then invest back into the business, is phenomenal.
Will they take on another staff member that they didn’t think they could afford, or an apprentice and start a young person on their path? Maybe they can invest more in technology that’ll make them more productive and take that next step into a bigger market or invest in research and development?’
Onwards and Upwards
In 2021, Donald Butchers expanded to the West End opening their popular Hyndland Road store. Previously a footwear shop, the space underwent a complete transformation to showcase Donald Butchers’ high-end brand and the tax relief valued by Cavetta certainly made the launch of this shop considerably smoother from a financial point of view.
Kevin and Danielle are delighted with their tax relief, with Kevin saying ‘Alan makes the whole process really easy. He takes what is perceived as a complicated process for businesses and breaks it down to explain it in a way that you can understand – he makes it all manageable. I have recommended Alan to other businesses, and I will continue to so they can receive the same benefit we have.’
With two store fronts, 13 employees, and a goal of owning three butcher shops, one for each of Kevin and Danielle’s children, it might not be long before they call on Cavetta Consulting again.
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