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Don’t be an easy target for HMRC in 2019

Get insured against the costs of a tax investigation by HMRC

We are seeing more and more professional services firms – and their clients being investigated by HMRC for tax evasion. HMRC issued 1,414 production orders to accountancy, law and other professional services firms in relation to investigations into tax evasion according to this report by economia.

At least two Manchester United stars were reported to have been investigated by HMRC over alleged image rights tax evasion as the authorities opened new cases against top footballers in the Premier League.

As enquiries escalate amongst top flight footballers, tax investigations into the affairs of small business are also on the increase and we say it is because both groups are easy targets for HMRC.

Are you under investigation by HMRC?

Murray Patt, founder of Manchester-based accountants Alexander Knight & Co, said:

“It increasingly feels as if small and medium-sized businesses and Premier League footballers are two of the most targeted groups for tax investigations by HMRC.

“In the case of footballers, forming an image rights company to receive payments of up to one fifth of a player’s salary is actually a legitimate tax strategy approved by the authorities if set up appropriately.

“However, it’s logical for the authorities to launch investigations into high profile players who earn their wealth via multiple sources because it can be a rich source of extra income, particularly for players who are new to the Premier League from other countries where tax rules are different.

Get insurance for HMRC investigations 

“Let’s not forget that small and medium sized businesses are an even easier target. If you don’t take care as a small business owner you’re at risk of being pulled up over minor mistakes or small disparities, which could incur disproportionately heavy fines and penalties imposed by HMRC.

“It’s important to have insurance in place to cover the cost of an investigation if you are a small or medium sized business, since in most cases you won’t have the funds of a top-flight footballer. Don’t get caught offside by HMRC.”

Alexander Knight & Co will arrange insurance for you and your business against the costs of an expensive HMRC investigation. Don’t get caught offside by HMRC. Speak to our specialist tax team now on (0161) 980 8788.

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WATCH: A coffee and a chat with Aquavision

In the first of our series of ‘A coffee and a chat with…’ we went to sunny Stockport to see our client Aquavision which is gearing up for growth in 2018 thanks to a flow of international orders.

Aquavision, the Stockport-based manufacturer of waterproof televisions is gearing for growth as international orders boom.

Aquavision manufactures in-wall and waterproof televisions which are being snapped up by luxury hotels and high-net worth individuals.

The business is now the UK’s market leader in the niche, grew revenues by twenty per cent last year, and has developed a vast network of professional partners worldwide.

Alastair Benn started the business from humble beginnings in his own garage.

Soon after making the world’s first waterproof television, he won his first order for a hotel project, the business boomed and he quickly had his entire family assisting him in boxing and dispatching the televisions.

Now operating from 10,000 sq. ft. premises and employing twenty people, the business exports 50 per cent of its sales to almost every country in the world. Aquavision serves four core markets: bathrooms, custom integrations, maritime and hotels.

Products range from 16” to the massive 85” screens manufactured onsite by a team of specialists. The hardware and software in the televisions integrates with all major manufacturers and the business is successfully developing a partnership with top-end audio brand Bang & Olufsen.

Alastair Benn, Managing Director of Aquavision, said:

“Waterproof televisions are in high demand across the world which is reflected in the fact that fifty per cent of our orders come from overseas. I’m passionate about producing high quality, luxury televisions.

“From day one, we’ve never compromised on quality and this is why we remain the number one British manufacturer of in-wall and waterproof televisions. We work hard at maintaining our reputation and we’re proud of the work we’re doing here.”

“We’ve not been affected at all by the Brexit decision or the recent General Election. We’re still growing, we’ve got an international outlook to business and we’re certain our European and worldwide partners will continue to do business with us as long as we maintain our innovation and customer service.

“The exchange rate has been great for our export market and we see no reason why any business which strives for innovation and has a global outlook can’t succeed. We’re proud to be creating new jobs and we’re dedicated to being based in Greater Manchester as we target revenues of £5m within the next eighteen months.”

Alexander Knight & Co is very pleased to be advising the Stockport-based firm.

Aquavision is a wonderful example of a successful British family-owned entrepreneurial company pushing the boundaries of what is possible in a fast-moving industry. We’re pleased to be working with the management team, advising them on tax strategy, growth and the business plan for the UK and international markets.

Stockport is one of those areas of Greater Manchester that seems to have increasingly more entrepreneurs springing up, re-locating and seeking professional advisers.

Investment into the borough has been considerable and there is a business culture developing there largely as a result of the successful implantation of an economic development strategy supported by Stockport MBC.

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