‘Brick Builders’ are a multi-generational family partnership that builds houses. Sales are irregular which means that income comes in peaks and troughs. This meant that tax bills were also irregular and there was a significant amount of cash reserves accumulating in the business.
How GWA helped
GWA looked at the business structure and recommended bringing in another partner, possibly from the younger generation in the family. This allowed for more efficient profit sharing, which meant that the existing partners moved into a lower tax band and paid less tax.
Previously the partners had no pension provision. We recommended accelerated pension planning using the cash reserves that were building up and then regular pension payments, which reduced the income tax bill and provided future security for the individual partners.