How do I raise funds effectively?

The vast majority of companies require external funding at some point. There are many reasons why even some of the most successful brands seek out funding from outside. A business might need to raise funds to pay for new premises, expand into a new market or acquire another company. Anyone who is interested in investing in a company will require strong evidence that the investment is worth making and when they are likely to see a return. This is why it’s so important to present them with a detailed, convincing business plan. Your business plan needs to be credible enough to convince an investor that they will see a substantial return. The plan should include information on your growth prospects, your USP and how you are managing your assets.

How do I carry out an MBO?

A management buyout or MBO involves the people who manage a company bringing their resources together in order to acquire part or all of the company that they work for. Before you go ahead and attempt an MBO, you’ll have various things to consider. You’ll have to find out whether the necessary funding is available and be truly confident that you can push the business forward. Everyone involved should agree on how the MBO will be funded, and the team buying out the company should have all the skills required to deliver success. In most cases, management teams need to seek out external funding when they want to purchase a company.

Various forms of finance may be available to you, and these include asset finance, high street lending, private debt and private equity. It’s also somewhat common for vendor loan notes to be used.

How do I carry out a EIS or SEIS?

The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are initiatives that help your business attract investment. SEIS is designed to help raise funds when your business is just starting to trade by giving tax reliefs to investors who purchase shares in your company. EIS works in much the same manner but is also open to established businesses. However, there are many rules that you’ll need to comply with if you want to take advantage of these schemes. The shares that are issued need to meet specific requirements. For instance, they need to be paid up in full, in case, on issue. These shares also need to be nonredeemable full-risk ordinary shares that carry no special rights to your business assets. You must use the money invested in your company to grow and develop your business, and the investment needs to involve risk. There must be a chance the investor could lose more than they gain as a net return.

How do I extract profits from my business more efficiently?

There are several options when it comes to extracting profits from your company. Your current situation is likely to determine which option is right for you. With a Director’s Loan, you can pay yourself back money that you have invested in your business without paying personal tax. You can also opt to take a salary from your business.

By keeping this low, you can reduce the tax burden and pay yourself the remainder of your annual income in dividends. Work-related expenses can be claimed back from your business. If a great deal of travel is involved in running your business, you can reduce the tax burden by claiming up milage back without having to pay income or personal tax. You will be able to claim for the first 10,000 miles you travel each year. Once businesses have paid corporation tax on their profits, everything else can be paid out to shareholders in the form of dividends. This keeps salary costs down and is widely regarded as the best way for business owners to earn money in a tax-efficient manner.

How should I structure my business?

The way that you structure your business can be highly influential on how lucrative and prosperous it is. In our experience, many owner-managed businesses are best off when they structure themselves as companies, as this can reduce the tax burden substantially. They can do this by taking a small tax-free salary, savings allowance and dividends. Nonetheless, if your company is making under £40,000 a year, you may wish to operate as a sole trader to avoid compliance costs. No matter how lucrative
your enterprise is, we can help you structure it in the most tax-efficient manner possible.

When is the right time to sell my business?

Before you put your business on the market, you need to ensure it appeals to buyers. The best time to sell a business is generally when it’s experiencing considerable prosperity. You may need to seek advice several years before you expect the deal to go ahead so you can make all necessary preparations. You’ll also need to create a long-term business strategy to ensure its future outside of your ownership looks strong. You are more likely to get the price that you want if your business offers something truly distinctive that makes it stand out from its competitors. Businesses with a quality management team also tend to be more appealing to buyers.

What is my business worth?

The value of your business won’t just be based on your current assets or how financially successful it’s been in the past. Other things that will be taken into consideration during the valuation will include your growth prospects, how well your competitors are doing, the strength of your business and how your company is structured. You can even improve the value of your business by producing a detailed plan for its future development. All kinds of factors are taken into consideration when your
business is valued.

How do I plan for my retirement?

Retirement planning isn’t just about your pension, and you’ll need to think about all of the assets that you own if you want to plan effectively. You’ll need to carefully consider how much income you will require during your post-work life, whether you have sufficient assets to help you meet your targets and whether you’ll have more assets available by the time you retire. It’s incredibly wise to get a stringent investment strategy in place long before you retire and to review it regularly in the run-up to retirement. Even if your retirement is less than five years away, it’s not too late to put something in place.

How do I save business tax?

Vertiqo can ensure you are taking advantage of the opportunities that might be available to you. These can include a range of tax reliefs, tax allowances and exemptions.

Research & Development tax credits – you may be able to make tax savings if you spend a certain amount on research and development and the size of your company makes you eligible. Patent box – this tax relief scheme could help you reduce the amount of tax you’re paying on profits you’ve earned from patented products and other pioneering ideas. Agricultural Property and Business Property Relief – you could reduce your Inheritance tax liability on property that you own if you’re
eligible for this initiative.

How do I save personal tax?

At Vertiqo, we provide a wide range of services related to tax planning. These include tax compliance, which involves preparing and filing your tax return on time and advising you well in advance when tax payments need to be made. We can also help you if you’re the subject of a tax investigation and are seeking in-depth advice. Our tax planning experts can also minimise the tax burden and delay the tax due on your assets as well as your income. We may also be able to help you reduce your liability when it comes to inheritance tax and your estate. We can also help with the management of your estate following your death to ensure your passing on as much of
your wealth to your beneficiaries as possible to your loved ones. Trust taxation advice is also available, and we can simplify the tax legislation around trusts.