About The Claim
A manufacturer of packaging for the food and pharmaceutical industries in the west midlands was introduced to us through their accountant to capitalise on available tax incentives. In the summer of 2021, they incurred substantial expenditure costs amounting to £344,111, which prompted them to explore potential tax breaks. Their accountant had claimed a substantial amount already and we were given the challenge of identifying further unclaimed capital allowances.
To help our clients to maximise their tax benefits we have created a thorough step-by-step process. Having this process alongside years of experience and knowledge can help us uncover even more tax relief. Our technical specialist team starts by collating all the relevant information to create a base work for the claim.
We organised a site visit to the client’s premises. To ensure accuracy and relevance, we collaborated closely with the client’s team, who provided valuable guidance during the visit. This on-site inspection allowed us to pinpoint and assess specific expenditures that could be included in the claim.
With a wealth of data in hand, we could then move to the valuation and analysis phase. During this stage, we conducted a comprehensive evaluation of the expenditures. Our expert team meticulously categorised these expenses into the general pool and special rate pool, adhering to the intricacies of the tax code. We also took great care to exclude any items that did not meet the criteria for capital allowances. This step required high precision and a deep understanding of tax regulations.
We meticulously compiled the necessary reports, ensuring they contained all the vital information required by the client’s accountant to seamlessly integrate the claim into their tax returns. Our commitment to precision and accuracy at every stage ensured a well-structured and compelling claim, one that we are confident to defend if HMRC had any queries.
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An observation from our Senior Claims Analyst, Dave Corfield...
“Working alongside the client in identifying eligible improvement expenditures alongside completing everything within the right timeframe was key to this claim. The team conducted due diligence, a site visit, processed valuations, and prepared reports for tax return inclusion. The outcome exceeded expectations, delivering significant tax savings and a satisfied client.”
“This isn’t the first time we have leaned on the CARS team for support with capital allowance claims and they never let us down. If we hadn’t sought their advice then substantial tax relief could have been lost, this case emphasises that important point. As accountants, our knowledge of the complex capital allowance world is restricted in comparison to a specialist team like CARS, so their guidance in areas of tax relief is invaluable to providing the best service for our clients.”