How our Sage partnership can help your tax planning

Joining forces with accounting software firm Sage has huge benefits for our customers

Businesses that have a strong handle on money coming in and going out are at an advantage when it comes to being able to manage their cash flow.

That’s why Swoop has joined forces with accounting software giant, Sage: when business owners work together with their accountants and sources of funding, they find they have more levers to pull when their circumstances change.

James Kennedy, Head of Tax at Swoop, says that tax is a fact of business life – but with the right tools in place, business owners can understand how to plan their taxes to minimise exposure and avoid overpayment.

Swoop sat down with James to get some ideas on how to make tax make sense.

Swoop: Why is it that many businesses don’t have their tax planned efficiently?

James: Tax is complex and many businesses do not have the in-house resources to manage their tax positions proactively.

Swoop: How do Swoop and Sage work together to solve this?

James: We have in-house experts that can proactively manage opportunities such as R&D tax credits. Sage’s software makes it easy to access the data you need to make the changes you need to manage your business more efficiently in many ways – not least tax.

Swoop: Have you got any examples of how businesses are leaving money on the table?

James: While most established businesses doing R&D (research and development) already have a long history of successful R&D tax claims, many are now bogged down in enquiries as a result of increased HMRC compliance activity. This can delay expected cash flows or even jeopardise future claims if mismanaged. At Swoop, we are spending a lot of our time helping businesses to successfully resolve their R&D tax enquiries. Other tax savings often missed include Capital Allowances and Business Rates reviews which can often yield significant savings when fully accounted for.

Swoop: Is it worth going through major changes to get a tax incentive?

James: Commercial factors should always dictate major changes to a business. Simply working with a trusted tax adviser should be enough to spot opportunities which those changes present.

Swoop: What about growth? Can you become more profitable without being penalised for making more money?

James: We recognise the strong link between R&D, grant funding and equity raises. Indeed, successful R&D claims often mean that the business is more likely to receive grants and equity funding. This is a direct way to support growth and we hope that our clients go on to have tax liabilities as a result of the substantial profits arising from that growth.

Swoop: There’s a budget coming up – what would you like to see from the government?

James: We were promised no increased taxes on ‘working people’. With a fiscal plan based on increasing tax revenue by over £8.5 billion a year by the end of the parliament, we can expect taxes on wealth. While that may mean businesses share some of the burden, we can only hope that the government will provide certainty on the position and any changes to the rules.

Swoop: Any final tips about what business owners should or shouldn’t do if they haven’t thought about tax efficiency for a while?

James: Speak with your accountant and other partners such as Sage. They can always at least point you in the right direction of a specialist who may be able to advise further on potential opportunities.

Next steps…

Swoop can help you run your business with better cash flow and more tax efficiency. You can check that your business is taking advantage of all the opportunities and incentives open to it by completing this short form.