Developing a partnership with their accountant
How it happened
We work alongside their accountant, DJH Mitten Clarke, on a number of projects. Meaning we have a strong relationship with them to provide successful capital allowance claims. They brought Parogon Group to our attention in 2021. The company completed renovations and refurbishments on their 9 restaurants, meaning they would likely qualify for tax relief against their expenditure costs.
The costs they had incurred were substantial. So, it was important that the correct approach was applied to ensure they gained the maximum tax relief available to them. DJH Mitten Clarke applied a thorough approach when claiming the capital allowances highlighted within the available invoices that had been given to them. They tasked us with enhancing the claim in areas that only a capital allowance specialist has the expertise to do.
Where did our process begin?
Parogon has a large number of properties and this meant there could be considerable detail to review to understand the potential tax relief. We started with a review of the 2 restaurants and the renovations that had been completely finished – The Swan with Two Necks, Blackbrook, Staffordshire, and The Red House Lilleshall, Lilleshall, Newport.
As the renovations and improvements had been extensive, we gathered all the available information relating to the works completed. This meant we could understand where our focus needed to be.
We established what had already been claimed through their accountant. We then put together a forecast illustration of what our process could potentially achieve. Having completed many claims like this before, we felt confident that our forecast of unclaimed capital allowances would accurately measure what Parogon could hope to achieve.
Giving this initial forecast to our clients, which is free of charge, gives them a full appreciation of what our full process could uncover. Plus, how this would benefit them specifically.
Was a claim available on top of the capital allowances already identified?
Yes, it was! Once we established additional capital allowances as part of our process, we then worked alongside DJH Mitten Clarke to apply these to the client’s tax position.
Understanding how a client will benefit before the full process is progressed is an important part of our approach. We always want to ensure the client is only going to benefit from completing these claims. Uncovering capital allowances is one thing but ensuring a client’s tax profile will benefit from them is a key consideration.
Once we knew that the claim would benefit the client and they were happy to proceed, we went ahead with starting the claim process. This began with a detailed site survey to establish all the qualifying items that had been part of the renovations. This is a crucial activity as it gives us a clear breakdown of items that wouldn’t typically show up in the invoices provided by contractors and suppliers. Once these items had been recorded and valued, we would then work our way through to establish which items qualify and for which tax break.
Their restaurant renovations did reap huge benefits
We uncovered £322,000 of unclaimed capital allowances for the two properties. This made up 33% of their expenditure. We also identified £650,000 for Structures and Buildings allowance tax relief.
The company benefitted from an initial tax saving of £61,000 and savings of £118,000 to be used over future years.
We still have further work with Parogon in reviewing their other properties. We are looking forward to seeing what further savings we uncover for them!
Parogon's thoughts on the process…
“We were recommended to CARS through our accountant to complete a capital allowance claim on a number of our commercial properties. The process was simple and straightforward. We were really pleased with the results!”
Phil Sharp | Property Director
DJH Mitten Clarke's thoughts on the process...
“The team are great to work with. You can’t fault the level of communication; we were never left in the dark and they took control of the whole process. The thorough due diligence they adhere to in their routines gives us the confidence that us and our client are in good hands. Their support meant we could give our client an even better experience with the services we offer.”
Lisa Jones | Client Services Director
DJH Mitten Clarke
If you would to talk to us about a potential capital allowance claim on your commercial property, then please get in touch!
Latest News
-
5 December 2024What Are Qualifying Activities for Capital Allowances?
Capital allowances are a key tax relief available to businesses for qualifying activities. They allow businesses to deduct the cost of certain capital expenditures related to these activities from their taxable profits, reducing their overall tax burden. However, not all purchases or investments qualify.... -
3 December 2024How Do CARS Assess Capital Allowances?
At CARS, we assess capital allowances and offer businesses and property owners a significant opportunity to reduce their tax liabilities by deducting qualifying capital expenditures. Here at Capital Allowance Review Service (CARS), we provide a thorough process to optimise these claims. Our goal is to...
Contact Us
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.