How a property group recovered £25,000 of overpaid corporation tax
A UK property group held its portfolio across several limited companies. Nobody had looked at the companies together, and money was leaking out in tax that was never owed and penalties that should not have stood.
The situation
The group owned its properties through more than one limited company. Each company had its own accounts and its own corporation tax return, and each had been dealt with on its own.
On paper, everything had been filed. In practice, HMRC penalties had built up, and nobody had checked whether the tax being paid across the group was actually right.
What we did
We reviewed the past filings for every company in the group, side by side rather than one at a time. That is where the problems showed up: corporation tax had been overpaid, and penalties had been charged that could be challenged.
We corrected the figures, claimed back the overpaid tax and dealt with HMRC directly as the group’s registered agent to have the penalties removed. We then brought every company fully up to date.
The result
£25,000 of overpaid corporation tax was recovered and £8,000 of penalties were removed. The group now has a monthly routine in place, so each company’s figures are checked as the year goes on rather than once it is over.
Why it matters if you own property through companies
Groups like this are common. A first company is set up for one purchase, then a second for the next, and loans start running between them. Each set of accounts can look fine on its own while the group as a whole pays too much. If that sounds familiar, a review of the full picture is usually the place to start.
Own property through more than one company?
Book a free call and we will tell you whether a review of your companies is worth doing.