FAQs

We work with organisations from the very earliest stage, before you’ve even incorporated, right through to Series A funding and beyond. Our accountants are embedded in the Cambridge ecosystem, with real connections to the universities, colleges and investor networks. Please get in touch to see how we can help support your tech startup or SaaS business.

Our international tax accountants provide strategic tax and compliance advice to UK companies operating or expanding overseas, including transfer pricing, VAT, local tax regulations, and establishing international structures through our global network.

If you are an employee/director in a company or a salaried partner in a partnership (or LLP), you will be taxed, broadly, on the salary and any benefits paid to you during the tax year.

Up to 6 April 2023, partners in a partnership and members in an LLP were taxed based on their tax adjusted profit shares for the account year which ended in a particular tax year. For example, the profit from the accounts ending 30 April 2022 would be taxable in 2022/23. There were special rules if someone joined or left a partnership in a tax year.

However, partners and members could see a major change to their tax from 6 April 2023.

For businesses with accounting years ending between 31 March and 5 April there will be no change to the way partners and members are taxed.

But if your business uses another year end date for its accounts the “Basis Period Reform” rules could have a significant impact on you; both in the technical complexity of calculating your taxable profit shares allocated to a tax year, and also in accelerating when the tax on your profit share is due to HM Revenue & Customs.

From 6 April 2024 onwards you will be taxed based on profits arising solely in the tax year, regardless of when your accounting year end falls. Where the accounting year isn’t in line with the tax year (i.e. accounts year end isn’t between 31 March and 5 April), you will need to apportion the tax adjusted profits from two accounting years to arrive at your taxable profits for 2024/25.

In 2023/24 there is a “transitional year” to prepare for this change. You will be taxed on your profit share from the accounting year that ends in the year to 5 April 2024. You will also be taxed on your “transitional profits”.

Transitional profits cover the period from your year end to 5 April 2024 less any overlap profits available for relief. Transitional profits can be spread over up to five years and careful planning will be needed to make the most of this aspect to mitigate the impact of accelerated tax payments on your cashflow.

Please speak to us if you need assistance understanding your tax position and we will be pleased to help.

If you are an employee/director in a company or a salaried partner in a partnership (or LLP) you will be taxed, broadly, on the salary and any benefits paid to you during the tax year.

Up to 6 April 2023, partners in a partnership and members in an LLP were taxed based on their tax adjusted profit shares for the account year which ended in a particular tax year. For example the profit from the accounts ending 30 April 2022 would be taxable in 2022/23. There were special rules if someone joined or left a partnership in a tax year.

However, partners and members could see a major change to their tax from 6 April 2023.

For businesses with accounting years ending between 31 March and 5 April there will be no change to the way partners and members are taxed.

But if your business uses another year end date for its accounts the “Basis Period Reform” rules could have a significant impact on you; both in the technical complexity of calculating your taxable profit shares allocated to a tax year, and also in accelerating when the tax on your profit share is due to HM Revenue & Customs.

From 6 April 2024 onwards you will be taxed based on profits arising solely in the tax year, regardless of when your accounting year end falls. Where the accounting year isn’t in line with the tax year (i.e. accounts year end isn’t between 31 March and 5 April), you will need to apportion the tax adjusted profits from two accounting years to arrive at your taxable profits for 2024/25.

In 2023/24 there is a “transitional year” to prepare for this change. You will be taxed on your profit share from the accounting year that ends in the year to 5 April 2024. You will also be taxed on your “transitional profits”.

Transitional profits cover the period from your year end to 5 April 2024 less any overlap profits available for relief. Transitional profits can be spread over up to five years and careful planning will be needed to make the most of this aspect to mitigate the impact of accelerated tax payments on your cashflow.

Please speak to us if you need assistance understanding your tax position and we will be pleased to help.

Charities and non-profits face a range of VAT challenges, including partial exemption and non-business apportionments. PEM’s VAT advisers have significant experience advising the third sector and can help maximise recovery and minimise risk.

For speed and accuracy, we always implement the right accounting system for you. We convert existing data and provide staff training. Partnering with leading cloud accounting systems and add-on software providers adds real value. Here are the platforms we use:

Dext: manages receipts, invoices, and other documents to keep accurate, secure financial records. Capture and upload your bills and receipts, and automatically fetch them from online cloud platforms.

Telleroo: a payment platform that removes payment anxiety by automating supplier and payroll payments. It shows high-risk changes, failed payments and syncs directly with accounting software.

Fathom: an all-in-one reporting, analysis and forecasting tool that combines insightful reporting, fast cash flow forecasting and actionable financial insights into one easy business management solution.

ApprovalMax: streamlines workflows so you don’t have to send us hundreds of emails to get approval for accounting documents.

Xero: we are a Platinum Partner with this reliable cloud accounting resource that helps you manage your finances in real time. See our certified Xero badges.

This is a deep dive into your business, which includes:

• Research: a review of your company’s history, marketplace trends, and commercial arrangements.
• Personal drivers: your ambitions and values, and what a successful exit would look like for you.
• Industry overview and M&A activity: understanding opportunities and threats to your business and assessing the appetite for market transactions.
• Trading history and forecasts: looking at your track record, articulating growth opportunities, and identifying other key considerations for the valuation process.
• Value drivers: how to optimise exit value by assessing growth plans, commercial opportunities, and threats to consider.
• Valuation: analysing current business trading and market activity from proprietary databases to formulate a market valuation. By discussing future growth plans and recent performance with you, we’ll help you understand how timing and positioning could drive value.

When it comes to the scrutiny of HMRC, nobody is exempt. Individual taxpayers, business owners, sole traders and directors of limited companies could all find tax returns under HMRC inspection.

But still, you’re probably wondering, out of the 12 million plus returns HMRC receives annually, why have they selected yours for an investigation?

Where proceeds are paid in tranches or held in escrow, the timing of when tax falls due can be more complex. We’ll help you understand your liability at each stage – so you’re not left dealing with a tax bill you aren’t prepared for.

MTD for Income Tax is being introduced in a phased approach depending on your level of qualifying income.

We’ll help you understand this. Timing is everything when it comes to maximising value and increasing the chances of a successful exit. We consider your goals, business readiness, growth plans, and M&A activity.

We will work with you to weigh up the pros and cons of each option and identify the landscape of potential buyers.

If you are interested in starting to plan for an exit or succession, please get in touch to discuss how we can make this process a seamless transition.

Tax is sometimes an after-thought, but it should be part of the conversation from the start. Decisions taken without considering the tax implications can be costly and. in some situations, difficult to reverse. Our business tax planning experts will make sure you implement strategies that help you stay compliant, while also working well for your long-term objectives.