Kentford Automotive, a family-run business from Suffolk has saved a six-figure VAT bill thanks to the timely support of BloomSmith and accountancy firm Buckle Barton.

The successful intervention hinged on structuring a planned property acquisition to ensure it qualified as a Transfer of a Going Concern (TOGC), thereby ensuring that no VAT was chargeable on the purchase price.

Kristy Cutts, owner and managing director of Kentford Automotive, expressed her gratitude for the advice and work provided by the two companies: “We were looking to purchase the property that we have been operating our workshop out of for well over a decade, but the vendor had opted to charge VAT on the property.

“When exploring the prospect of a VAT bridging loan, we spoke to BloomSmith, who advised that, if correctly structured, we may not have to pay VAT at all.

“They then put us in contact with Buckle Barton, who normally act as their VAT agent, and in this instance helped us structure our purchase to avoid this significant cost.

“The transparency and assistance from BloomSmith and Buckle Barton, made what could have been a stressful and expensive situation easily manageable…

“Grateful not to have had to pay such a substantial figure out of cash flow – we can now focus on our day-to-day business, rather than wrangling with HMRC.”

Mark Dalton of Buckle Barton highlighted the challenge small businesses can face when it comes to dealing with tax: “Understanding how and when you must pay VAT can be complicated; this case exemplifies why it’s always worth getting expert advice.

“Working closely with Kentford Automotive, we were able to analyse their property transaction and provide the precise guidance needed to structure it as a TOGC.”

Nigel Smith, CEO of BloomSmith added: “This case perfectly illustrates the power of collaboration, and we are, of course, delighted to deliver a positive outcome for Kristy and Kentford.

“Transparent operating practices and a customer-orientated approach ensure our clients are able to navigate a complex financial landscape with confidence.”

Contact our team today to see if we can help you with a commercial property VAT obligation.