The following scenarios help to illustrate our approach:

Case 1

To facilitate the requirement of their growing business a client spent over £1.5 million in building work at their premises. They recorded this within the management accounts as land and buildings.

Peter Atkinson, audit and general practice partner explains: "our audit approach involves working closely with our client, reviewing monthly management accounts and advising on accounting policy on an ongoing basis. This enables us to notice any potential accounting and taxation opportunities or pitfalls at an early stage, before the year end accounts are written or audited."

"In this case we liaised with our tax department and we were able to establish that the whole of the expenditure could be treated as incurred on the provision of plant and machinery, for taxation purposes. Therefore, within the year end accounts the client was able to claim first year capital allowances at 40% on the entire £1.5 million, compared with just 4% allowances if the expenditure had been classified as buildings, thereby accelerating the amount of allowances in the year by £540,000, and saving Corporation Tax of £162,000."

"Working closely with our clients allows us to act quickly and evaluate all aspects of their accounting function to solve, or in this case, take advantage of technical issues as soon as they arise."