The client
Craig Wood Solicitors Ltd is a law firm led by directors John MacColl and Shahid Latif.
The firm has worked with Benson Wood & Co for more than five years and is now supported through our Stay on Track service.
Running a practice without the full picture
John and Shahid had been running Craig Wood Solicitors for a number of years, but their accountant relationship wasn’t giving them what they needed.
The compliance work was being handled, but year-end accounts and tax returns arrived close to deadlines, and proactive planning wasn’t part of the relationship.
Their cashier kept the day-to-day records in good order, but the directors were still relying on their accountant for tax advice and forward planning.
Over time, that had a cost. Personal tax allowances had been lost, there had been tax costs that better planning would have reduced, and they often had limited visibility over what was coming until close to the deadline.
They wanted proactive advice, regular contact and more certainty over both the business and their tax affairs.
John and Shahid were recommended to Benson Wood by their financial adviser. Chris met with them to understand the business, their frustrations, and the support they needed, and then put together a service plan tailored to their situation.
What we put in place
The first priority was to complete the year-end accounts promptly, so the tax position could be established well in advance rather than close to the deadline.
From there, the relationship moved to quarterly Growth Reports and review meetings, with tax planning built in ahead of both the company year-end and the tax year-end.
The quarterly meetings cover business performance, company and personal tax provisions, pension contributions, remuneration planning and company cars for the directors and employees.
Benson Wood worked alongside the firm’s financial adviser to make sure pension contributions were timed correctly and allowances were fully used without triggering any additional charge.
John and Shahid have needed to extract different amounts from the business at different times. Chris helped them build a plan for both directors and mapped out how those decisions would look over the next couple of years.
The team also regularly work with the firm’s cashier, supporting them with queries and changes as they come up throughout the year.
What changed
With tax planning in place throughout the year, John and Shahid could make decisions they hadn’t been able to make before.
They knew what to set aside for business and personal tax liabilities. They could plan pension contributions without exceeding allowances and make decisions around company cars with proper tax advice behind them.
They also had more confidence in the financial results because the information was being reviewed regularly, not only when a deadline was approaching.
The anxiety that had come from not knowing, and finding out too late, was reduced.
Since working with Benson Wood, turnover has grown by around a third and the firm has taken on several additional members of staff.
The outcome
The biggest change has been visibility. John and Shahid now know their tax position well in advance rather than waiting until close to a deadline, and can plan for the business and for themselves with less uncertainty.
The frustration of overpaid tax and missed planning opportunities is gone, along with the anxiety that came from not knowing what was coming until close to the deadline.
“Working with Chris and the team on a regular basis has given us much more confidence in our financials. We know our tax position well ahead of time, we’re making proper use of our personal and pension allowances, and we can make decisions for the business and for ourselves with a lot more certainty than we had before.”
John MacColl and Shahid Latif, Craig Wood Solicitors Ltd
