Getting a Business Back on Track
- Case Study
Strategic intervention revives struggling business through financial analysis, operational improvements, and leadership development.
As a result, I lost my VAT number which meant that my company could not claim any VAT back on imports for a period of 18 months.
This affected my business substantially. I struggled to find someone to help me resolve this issue. Janet took my company accounts and sorted everything out which was no mean feat.
She even assembled a team of specialists to advise on how best to address the VAT issue. The end result is my company is now back on track and fully compliant with HMRC. Thank you so much Janet you’re a star, I am truly grateful that this is no longer hanging over me and my business
Introduction
Good Lead UK Ltd is an online mail-order business trading in high-quality AC adapters and remote controls. Martyn Watters, the owner of the business contacted Ekstra Accounting Solutions with an issue that he had been struggling with for over 15 months. Despite several attempts he was unsuccessful in finding someone to take on and properly resolve any of the issues.
The Challenge
Martyn had three main issues that he was struggling to the appropriate support to resolve
- Outstanding vat returns (6 quarters in total) due to deregistration by HMRC in error.
- Oustanding accounts for approximately 18 months with a statutory filing due in less than 3 months
- The absence of any accounting support to assist his business to operate during the covid pandemic
It was clear from my first conversation with Martyn that he was in a very challenging position. Somehow through no fault of his own, his business faced some serious issues that needed urgent attention. The business model relied on the timely import of goods from overseas. Without vat registration, he could not reclaim significant amounts of recoverable vat which was now threatening the continuity of his business.
The Solution
We established that several issues needed urgent attention.
- Manual reconstruction of the vat inputs and outputs for the vat returns/periods outstanding to determine the financial impact of deregistration
- Opening a dialogue with HMRC to determine how to resolve given that deregistration was an error
- Application to reinstate vat registration and provision of acceptable past documentation to enable reclaim
- Bringing the accounts up to date to understand the company’s performance and cash flow during the height of the pandemic
How Ekstra Accounting Solutions Helped
- We collated the appropriate information together to determine the overall financial impact of the issue
- We identified and hired the appropriate vat experts to assist with liaising with HMRC in relation to the error
- We brought 18 months’ worth of accounts for the company up to date to provide the owner with the most up to date information
- All of the above was achieved over a 3 month period
Results
- Good Lead UK Ltd processed and submitted all 6 quarters of outstanding vat returns within a 3 month period of engaging Ekstra Accounting Solutions
- Good Lead UK Ltd filed their statutory accounts by the due deadline ensuring continuity and compliance
- Good Lead UK Ltd was able to continue with its operations despite those challenges
- Martyn the owner was able to finally put this stressful experience behind him