Everything You Need To Know On Entrepreneurs Relief

Word is out that there are going to be some major changes made to the current entrepreneurs relief. Although details are yet to be confirmed, there are talks of the possibility of entrepreneur’s relief to be scrapped in full and announced in the forthcoming budget on March 11th, 2020. Some have argued that the entrepreneur’s relief is expensive and somewhat ineffective, and that the money saved could be used for other purposes that are in dire need, for example our beloved NHS. However, by many based here – and those overseas who saw the opportunity to set up a business in this country – see the UK as a wonderful tax haven for entrepreneurs, providing a discounted rate that they are unable to find elsewhere.

 

What is entrepreneur’s relief?

Entitlement to entrepreneur’s relief means that you’ll be capped at paying 10% tax on all your income of qualifying assets. It was introduced in 2008, allowing people selling their companies to only pay half the normal rate of capital gains tax on up to one million pounds. With a new government in place, it was then considerably raised to ten million pounds! Yes, you read that correctly, £10,000,000. This was devised with the intention of helping people to grow British businesses, encourage entrepreneurship and bring wider benefits to society – jobs, high street comeback and community cohesion. However, there are certain criteria that you need to hit in order to be eligible.

 

Eligibility is based on the following conditions

  • The business has been trading for at least 2 years up to the date of selling
  • You’re an owner (at least 5% shareholding and economic interest) or an employee of the company in question

 

It is reported that business people who fall into this category, saved a whopping £2.4 billion last year via entrepreneurs relief. So, with such high figures and the benefits stated, why is its existence under review?

 

The Association of Accounting Technicians have called on the Chancellor of the Exchequer, Sajid Javid, to eliminate the entrepreneur’s relief from existence in the new budget. These are due to claims that there is little evidence to show the impact the savings are making on encouraging entrepreneurialism and that the actual costs to the government are dramatically higher than the £2.4 billion saved by business owners.  To add fuel to the fire, the Prime Minister Boris Johnson has stated that the Treasury are zealously against the relief savings being made on sales.

 

What does this mean for you?

The tenable tax changes will impact you greatly if you are considering selling your business, potentially raising your tax cap on sales from 10% to the usual 20%. A decision needs to be made quickly as March is on our doorstep. Our specialists in our strategic team here at Nordens, can assist you with the entire process. We know that the decision to sell your business can represent one of the most stressful and complicated stages of running a company. We strongly believe that before you even see the finish line, you should know the valuation of your business. We’ve fixed up and fine tuned a business valuation tool so that you don’t have to worry about doing the maths, nor spending a penny for our answer. One simple form is all it takes! Check it out HERE.

 

Why choose Nordens?

Our process doesn’t stop there. Through highly tailored guidance and advice, our Nordens Strategic team can define exactly how your business can reach new levels of success. Some of you may wish to set new objectives for the business, some of you may want greater analysis in terms of decision making, and most importantly in this case, some of you may want to make significant changes that will increase the value of your company. We interpret your environment, identify key transformations and generate the confidence you need to move forwards – however that may be.

 

Regardless of how you define success for your business, our strategic services are guaranteed to bring about real and lasting change. In fact, we have a 100% success rate with our clients!  So, what services do we offer?

  • Bespoke plans for each individual client
  • Vision and financial strategies
  • Business coaching
  • Management issue solutions
  • Branding and marketing strategies
  • Financial transformation planning
  • Strategic planning and forecasting
  • Strategic overview perspective
  • Enhancement of competitive advantages

 

If you decide that you are in the market of selling your business, work with our trained accountancy team to achieve the most tax efficient way of doing so. And in some cases, we can review your position and recommend changes to bring you within the requirements for entrepreneurs relief. We’re here to help you. Click the green button for a free consultation. Alternatively, email us on enquiries@nordens.co.uk  or call on 02085300720

 

 
Beyond Accountancy

At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.

Nordens Strategic

Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.

Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.

Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews

<
Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

Read more reviews on Trust Pilot

Jamie Brown

Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

Read more reviews on Trust Pilot

Simon Rose

Director - Rose Opticians

I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

Read more reviews on Trust Pilot

Rebecca Bossick

Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

Read more reviews on Trust Pilot

James Aconley

Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

Read more reviews on Trust Pilot

Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

Read more reviews on Trust Pilot

Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

Read more reviews on Trust Pilot

Tony Charles

Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

Read more reviews on Trust Pilot

Peter Horlock

Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

Read more reviews on Trust Pilot

Simon Cushing

Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

Read more reviews on Trust Pilot

Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

Read more reviews on Trust Pilot

James Robinson

Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

Read more reviews on Trust Pilot

>
Latest News

We've always got our ears to the ground when it comes to interesting, useful and topical information relating to business and accountancy.

Emergency Business Loan Scheme…
The emergency loans scheme for businesses IS struggling to survive amid the coronavirus pandemic has been revamped following strong criticism. The Treasury said it had received more than 130,000 loan enquires from firms but few...
Job Retention Scheme AKA…
The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19). Employers can use a portal to clai...
Nordens TV

We love making videos that break down convoluted accountancy jargon into plain-talking, actionable and accessible facts.

What Is An Audit…
In this video, our CEO Mitch Hahn explains the importance of auditing and why having Nordens conduct one, may be the best course of action for you and your company. As registered Auditors I want to explain that the importanc...
Sole Trader Or Limited…
Although the sole trader route, which is commonly referred to as being self employed, is the most popular way of running a business in the UK, there are significant advantages of operating as a limited company. In this video, ...
  Why I Founded Nordens
Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

Mark Norden Signature

Mark Norden
Founder

We're Professionally Certified

Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!