Birkett & Co accountants cuts £20,000 tax bill to £23


8th of February, 2011 Bookmark and Share
Go the extra mile and it will pay off in the long run.
So says Tim Birkett, founder and Managing Director of Birkett & Co accountants in Broadstone, Dorset.
Seventeen years ago Mr Birkett was visiting a jeweller’s in search of a gift for his wife to celebrate their wedding anniversary and he overheard the owner complaining about a tax enquiry, which could have threatened the future of his business.
“His accountant had filed his accounts for the year and without telling him had subsequently written to the tax office to say that he believed the stock value was incorrect and £50,000 less than it should have been. The tax inspector had issued a tax demand for £20,000 on the stunned jeweller.
“I felt that the jeweller had been poorly advised and decided to represented him. I subsequently explained to the inspector that the stock value of gold varies wildly depending on its market value and that gross profit margins were not consistent. The tax inspector soon agreed and we got the £20,000 tax bill reduced to £23!
“The moral of the story is that the jeweller is still a client 17 years later,” said Mr Birkett, adding that businesses that are most vulnerable to tax enquiries are cash based such as take-away food outlets and antique shops.”

About Birkett & Co
Birkett & Co in Broadstone, Dorset was founded by Managing Director Tim Birkett in 1979 and employs four staff. It has 600 clients and in 2010 the business grew by 12 per cent. www.birkett.co
theprchap
ThePRChap is a former business editor for a regional newspaper who guarantees coverage.