Sole Trader Case Study No 1 - The Details

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This client is a skilled tradesman. Turnover is approximately £150k

Areas covered

Dallas & Martin performed full accounting and taxation services

Identified needs

It was evident that this client could save significant money if he introduced a computerised accounting system, rather than the manual record-keeping he was used to.

Upon transfer of the accounts to Dallas Martin, we noted that the services provided by the client's wife were not being put through the business. Altering that, and factoring in the actual hours' she worked on a part-time basis, enabled a tax saving proportionate to our entire accounting fee.

 

 

Outcomes

Our client's wife is now training to utilise the new computerised system.

This solution will also enable better control of debtors and enable effective cash collection.

Another benefit is that any bad debts can be written off and offset against income tax and VAT.

With the accounting system providing up-to-date information, the client can maximise higher-rate tax allowances against his pension contributions in the current tax year. Before this up-to-date system was implemented, the information was not available until the tax year had finished and so the benefit was lost.

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