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What is the best tax strategy on multi stores

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Hi Everyone,

I need some help/advise on how to save tax on multi store business. I have opened my first retail outlet last year and in process of opening a 2nd one now and soon I will be opening more. At the moment it’s under one limited company. But I want to ask if there is a better way of going forward instead of keeping all stores under one limited company or what would be more tax efficient way of going forward. Thank you for your time reading my question and thanks in advance for your help.

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31st Jan 2019 07:20

I’m no expert in the retail sector but I would still be very confident to wager that the best tax strategy would not be one that involved seeking advice from strangers on an internet forum.

Did you try Dave down the pub? I hear he’s always got a wheeze or two up his sleeve.

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31st Jan 2019 07:58

Tim’s response is obviously tongue-in-cheek, but essentially on the money.

Tax strategies should always be bespoke - no 2 situations are identical. If you don’t have an accountant, nows the time to get one (definitely before you buy the 2nd unit). If you already have one and (s)he won’t gice you a satisfactory answer, change.

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31st Jan 2019 09:26

It's likely that commercial issues will be more important than tax issues.

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By DJKL
31st Jan 2019 10:50

No idea if small business rates relief is on point, but if it is consider how it impacts rates payable with all stores in one entity or different stores in different, non grouped/ connected entities.

Counter that with costs savings re one set of accounts, vat returns for only one business, risks re trapping losses, perception of business strength to lenders and, possibly more seriously landlords- if an established business comes to us as a tenant we may even lease to them with no deposit, an off the shelf newco will certainly need a rent deposit paid to us and I may not even agree to rent to it at all if I am not convinced by their pitch/business plan.

There is no correct answer and plenty of other considerations to take into account so pay for bespoke business and tax advice.

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31st Jan 2019 15:24

Would you pick the first random responder off the internet to run your new store? No, you would not, because giving important jobs to strangers off the internet is stupid.

Tax advice works the same way.

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