Improving Visibility and Reducing Tax Exposure

Our client needed greater visibility over the profitability of multiple properties while also planning for the sale of a company-owned property. By combining detailed departmental reporting through NOMI with proactive tax planning, we helped the client better understand business performance and reduce the corporation tax impact of the property disposal.

Our client operated multiple properties but lacked clear visibility over the profitability of each property. At the same time, they were considering the sale of a property owned by their company and were concerned about the corporation tax implications of the transaction.

1. Departmental Profitability Analysis Through NOMI

We implemented and refined departmental reporting within NOMI, enabling the client to see the true profitability of each department/property. This provided:

• Clear insight into the performance of each business area.
• Identification of the most profitable and least profitable departments.
• Better-informed decision making regarding pricing, costs, and resource allocation.
• Improved management reporting and profitability monitoring.

As a result, the client gained a much stronger understanding of where profits were being generated and where operational improvements were required.

2. Proactive Tax Planning Before Property Disposal

Before the property sale was completed, we prepared projections to calculate the expected profit on disposal and the resulting corporation tax liability. By reviewing the position before the year-end, we were able to provide proactive tax planning advice rather than reacting after the event.

We explored a range of legitimate tax mitigation opportunities, including:

• Making employer pension contributions.
• Reviewing capital expenditure opportunities.
• Assessing the timing of transactions and available reliefs.
• Considering other profit extraction and tax-efficient planning strategies.

By identifying the expected property disposal profit early and implementing appropriate planning measures, the client was able to significantly reduce their corporation tax exposure while remaining fully compliant with tax legislation.

At the same time, enhanced departmental reporting through NOMI gave management the financial visibility needed to drive improved business performance and profitability.

The client achieved better business insight through departmental profit reporting and benefited from proactive tax planning that reduced the tax impact of a major property disposal.