All businesses need to raise finance at some point in their life, whether it be to fund expansion of new ventures, or just to survive through a ‘sticky patch’. What you don’t want is an unexpected tax cost hitting your funds, let alone the prospect of extra bills for interest and penalties.
What is often forgotten is that financial transactions can affect not only the amount of VAT that you have to pay, but also the amount that you can reclaim on expenditure. It is not sufficient to just think of those obvious costs that bear VAT, but also those that don’t bear VAT, since these can still create painful VAT bills if not planned for in advance.
Raising finance when part of a wider restructuring of your business also brings its own tax and VAT consequences which will need to be addressed.
We can advise you on the restructuring of your business and how to structure the finance so as to minimise the tax costs of doing so.
For more information on raising finance see our Corporate Finance section.