At Chadwicks, we believe that accountancy isn’t just about filing numbers, it’s about finding opportunities that can make a tangible difference to the businesses and lives behind those numbers. One recent case highlights exactly how proactive thinking and early action can change the game for a struggling client.
Our client was enduring a tough financial year. The business hadn’t performed as well as expected, costs had risen, and cash flow was tight. To make matters worse, he was already on a payment plan with HMRC to manage a corporation tax bill from the previous year, which was proving difficult to keep up with.
This was a pivotal moment. Left unchecked, it could have created a downward spiral of financial stress and unmanageable debt.
Instead of waiting until the last minute, we encouraged the client to complete their year-end accounts early. This gave us the chance to run the numbers promptly, take stock of the loss, and decide how best to use it to their advantage. While many accountants might simply file the loss and move on, our team took a deeper look. We knew there was an opportunity to carry that loss back to the previous year’s accounts — something HMRC allows in certain circumstances.
By offsetting the loss against the prior year’s profits, we were able to reduce the corporation tax liability by £57,000. That meant:
- A huge reduction in the tax debt HMRC were chasing.
- A much more affordable payment plan for the client.
- Breathing space to stabilise the business and focus on recovery.
This wasn’t just a tax-saving exercise, it was about giving our client hope and control when things looked bleak. By combining early action with technical expertise, we turned a difficult year-end into a powerful tool for financial recovery.
Our Philosophy
This is the Chadwicks difference. We don’t just file accounts; we look for ways to:
- Maximise opportunities within the rules.
- Alleviate financial stress.
- Help clients plan for a stronger future.
If your business has had a tough year, don’t wait until deadlines loom. Proactive planning can make all the difference.
Contact us on 01789 773182 or 📧 email info@chadwickaccountants.co.uk to find out how we can help.
