“This was a pivotal moment. Left unchecked, it could have created a downward spiral of financial stress and unmanageable debt.
“Instead of waiting until the last minute, we encouraged the client to complete their year-end accounts early. This gave us the chance to run the numbers promptly, take stock of the loss, and decide how best to use it to their advantage.”
While many accountants might simply have filed the loss and moved on, Chadwick’s knew there was an opportunity to carry that loss back to the previous year’s accounts - something HMRC allows in certain circumstances.
“By offsetting the loss against the prior year’s profits,” adds Rachael, “we were able to reduce the corporation tax liability by £57,000. That meant a huge reduction in the tax debt HMRC were chasing, a much more affordable payment plan for the client, and breathing space to stabilise the business and focus on recovery.”
Chadwick’s mantra is that they believe that accountancy isn’t just about filing numbers: it’s about finding opportunities that can make a tangible difference to the businesses and lives behind those numbers.
“This wasn’t just a tax-saving exercise,” concludes Rachael. “It was about giving our client hope and control when things looked bleak. By combining early action with technical expertise, we turned a difficult year-end into a powerful tool for financial recovery.”
