Where they were
Ellie came to us running Project Management Professionals as a straightforward trading company, before growth started building up real retained profits.
What we did
As PMP began generating retained earnings, we carried out a restructuring project to insert a holding company, B&D Holdings, above the trading company, so profits could be moved up and invested tax efficiently into a new SPV rather than extracted and taxed personally. Alongside that we handle Ellie's bookkeeping, payroll, VAT, year end accounts, and personal self assessment, and manage tax planning around capital allowances, staff benefits, mileage, bonuses, and pensions to keep corporation tax efficient. We've also picked up the accounts for a related property development company, Burton Developments.
Where they are now
PMP has grown significantly since joining us, and the group structure we put in place means profits can now be reinvested efficiently rather than lost to unnecessary tax, giving Ellie a proper platform to keep growing.
Industry insights
Dividends paid between companies in the same group are exempt from corporation tax, so once a trading company is retaining real profit, a holding company structure lets that money move up and get reinvested, into property or a new venture, without being taxed twice along the way. Getting HMRC clearance and the structure right at the time of restructuring is what keeps it tax neutral, and getting the timing right, before profits build up too much, avoids a more complicated and expensive restructure later on.