During this 4 month project, we supported a £10m+ business through a significant VAT inspection request, by successfully delivering a financial review, full audit and senior stakeholder management, to help them to avoid substantial fines.
The Challenge
A national facilities management company started experiencing the busiest time in the company’s trading history, increasing their turnover by 50% to nearly £10m because of their established
professional reputation. They were in great demand, but these increasing demands also resulted in some unreasonable workloads and significant staffing issues. A four-year VAT inspection had been requested and was not what the company needed as it surfaced from the covid pandemic. The company’s key manager sadly had also suddenly passed away, leaving the company in desperate need of stability regarding its financial systems, and an adviser with a solid understanding to be able to manage the VAT inspection for the lowest possible tax outcome.
Our Approach
Through immediate deployment of a small team of experts that included an ex HMRC VAT inspector, we underwent a full review of the company with the aim to establish a company
wide financial system. Relevant financial information was documented, audited and made ready to present to the VAT inspectors. To ensure a full understanding of the accounts,
we analysed VAT returns by comparing them to the company’s existing financial systems, reviewing issues, and preparing a test environment to ensure compliance.
Enter our Fractional Financial Director (FD), able to prepare and plan for all eventualities, and with a detailed understanding of HMRC’s intent. We provided someone senior who can fully understand the client’s needs, is able to present the information in a truly professional manner for all parties, including having a professional adult conversation with senior HMRC representatives
and most importantly, who can deliver on time. We immersed ourselves fully in the project and went above and beyond by engaging directly with the inspectors and sitting
in on VAT meetings.
The Results
The financial review was delivered on time, resulting in successful repayment of VAT owed and no fines being levied on the company. due to the way CJM advised the company to work with HMRC. We also added value by advising on how to optimise many processes, arranging for additional financial governance and controls to be implemented, applying sound financial expertise to ensure future alignment with HMRC’s requirements. Additionally, we included a long-term plan for the CEO and accounting staff to develop financial reporting, saving them £700k in potential fines, and thousands more in optimised processes within the given timeframe.
Our client proceeded with our suggested governance and reporting improvements and this was in place until the company was sold a year later.
“LuminaFD deliver exceptional service & expert financial support, always first class & reliable”
– testimonial from an individual