Niche company with limited growth and high levels of tax
AMSL Ltd. was meant to be a growth company, but its growth had become sluggish. The problem was that the company was bleeding cash. Excessive salaries paid to the owners, disorganized pension schemes, and high corporate taxes created massive drains on AMSL’s resources. All of these things combined to suck the life out of the company and prevent them from expanding.
The company’s owners knew that in order to create the conditions where their company could grow freely, they would have to make changes in how they ran it. They consulted a number of tax and corporate advisers, but they didn’t get the help they needed. Their former advisers provided only generic information, which was essentially useless because it didn’t relate to AMSL’s specific circumstances and needs.
It wasn’t until AMSL consulted with Ray Best of Pareto Lawrence that AMSL realized how poorly served they had been by their previous advisers.
When Pareto first started working with AMSL, it was right before the end of AMSL’s fiscal year. Pareto created both emergency strategies to get the company through the current crisis, as well as long-term overall strategies to ensure the company would continue to thrive.
The company had been paying almost £250,000 in salaries to the owners. Following Pareto’s advice, the first thing AMSL did was to implement a proper remuneration strategy. That had a large and immediate impact on the company’s cash flow.
AMSL and Pareto continued to have regular meetings. AMSL’s owners found the information and strategies simple, straightforward, and understandable. The clarity of the plans gave them confidence to proceed.
They reorganized their pensions, which had been “all over the place.” They implemented strategies that enabled them to control corporation tax. And they learned to protect not only the company’s finances, but also their own personal wealth. Pareto provides its clients a combination of business and personal planning, and it helped the owners write effective wills and get proper life insurance.
They were “quite surprised and pleased with the way everything has gone.” So far, they have saved around £135,000 to £170,000 in taxes and are in proper control of their financial arrangements for the first time in many years.
If high taxes and cash-flow problems are stifling your company’s ability to grow, we would be pleased to talk with you about how our strategies can help. Please give us a call on 0845 242 0207 for a free no-obligation meeting.
“Unlike all of the previous advisers we had seen, Pareto were able to explain complex issues in understandable terms and without jargon. This provided us with the confidence to proceed.”