Tax Due Diligence

Due diligence is required at various stages in the business life cycle. It can be requested by the banks when a business is about to refinance its debt, and it is often a pre-sale requirement when people are looking to buy or sell companies.

We work both with businesses looking to gain comfort that their own tax affairs are in order, and with private equity investors looking for a clear steer on the tax risks inherent in the companies they are buying.

We also work closely with other advisers including lawyers to ensure that deal processes run smoothly and that transaction documents are fully aligned.

Whatever your need, we can help. We provide a full tax due diligence service which looks at:

• the current ownership structure of a business, including any recent reorganisations and changes in shareholdings.
• the corporation tax history of a business.
• the employment tax status of a business, examining:

1. payroll compliance.
2. processes to identify and deal with taxable benefits.
3. accuracy of Covid19 related grants and reliefs such as furlough payments.

• VAT compliance including timing of payments and returns.
• on-going and recent HMRC investigations or enquiries.
• a business’s compliance with tax governance legislation.

Whereas we usually complete full-scope tax due diligence reports, equally we can provide a more tailored or specifically targeted “red-flag” review, looking at the key areas where we usually detect tax risks. These include:

• Compliance with Employment Related Securities (“ERS”) legislation.
• Compliance with National Minimum Wage (“NMW”) regulations.
• Compliance with off-payroll workers legislation (“IR35”).

Please get in touch to discuss your tax due diligence plans. We will be pleased to help.