Prakash Shah

Reward card schemes are gaining attention, but all that glitters is not gold, especially regarding tax clearance. At RJF, clients often ask us about these, and our stance is clear: if there's no explicit HMRC approval, it's best to avoid it. Got questions about a scheme you've encountered? Leave a comment or send me a message. #Business #Startup #LeanStartups

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Zapaygo is just the latest example of why the UK's Insolvency system is unfit for purpose. Founded by serial failure Elliot Hall, Zapaygo took £500k off Crowdcube investors and £5m off British Business Bank via a Future Fund loan. Various others investors also wasted their cash. From the outset it was clear to anyone with any business sense and experience that this was a joke outfit. Elliot was a joke as was his team of mincers. They had a 'contract' with the NEC Group which if it had been of any commercial value would have let them build their business. But it was mainly smoke and mirrors and never produced a penny. In fact despite the huge valuation given to the company (by Elliot), this risible shambles never turned over more than few pennies. It never functioned and is now in liquidation although as you will see below, even this has been farcical. In January 2023 - so almost 2 years ago, the filing at Companies House stated Order of the Court to wind up. But nothing has happned since. The company has been in limbo for more than 3 years. Elliot Hall who has a lot of questions to answer about where all the cash went, has been let off and is as we write starting up some new nonsense again. The last filed accounts if they are to be believed, showed current creditors of over £10m for a company with a revenue of £24k. Losses for that year were £1.6m and apparently the company employed 14 people. What were they doing? Back when Elliot was taking cash off investors via Crowdcube, we wrote about this company revealing some uncomfortable truths about the NEC 'contract' and the use of passing off by Elliot to fool investors. Elliot set his lawyers onto us very quickly and we were obliged to withdraw our articles and all mention of Elliot and Zapaygo or face legal action. The investment was a success as a result. We were quite sure we were right but the risk was too great at the time. Now it appears that the legal firm was also in on the game; which is worrying! We contacted them but they have refused to comment. It is a huge mess - one that involved millions of pounds and many millions of pounds of UK taxpayers cash. So why is it in limbo? Why isnt Elliot facing charges? Why hasnt he been banned as a Company Director? What the hell is going on? We are told that Elliot has tried to erase this experience from his LI page - you couldnt make it up mate 🤣

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Well done to Alex Chalmers for publishing a really well researched look at EIS/VCT funds. These themes have been bothering a lot of us for years: the fees, the mediocre performance, the misalignment of incentives. I thought I'd add some broader context. 👉 EIS funds :: like everything in VC, it's about the manager. There are some EIS funds that I'd choose to work with over GP/LP funds. I think Fuel Ventures 🚀 (🚀 Mark Pearson, Oli Hammond) are great, real energy and value. Same with MMC Ventures - a firm thesis and very professional approach. These are 2 great examples of funds with an identity & direction. They act like VCs, not 'fund managers'. Generalist funds are difficult to operate in any model, tax efficient or otherwise - it's hard for founders to get value add beyond capital when their investors don't have the specific expertise in a sector or model. The EIS/VCT industry has always been heavy on fees, but 'deal' & 'board' fees have also been common with GP/LPs too for a long time. That doesn't make it good practice, but it's not unique to EIS funds. One of the good things about EIS funds are the access they give to retail investors to a portfolio of tech companies - and that's been incredible for the industry over the last decade. The downside is that some fund managers are clueless, at best, malicious at worst. I've seen atrocious terms from EIS funds (5% exit warrant on entire share capital of a business + mega fees + participating prefs) - but that's a case of buyer beware - and maybe more of a stand from the BVCA. (BTW, the funds that take this approach have the worst fund performance.) It's easy to look at EIS funds after years of LPs backing new funds galore, but don't forget that these operators have been around for years, some (inc. Oxford Technology Management) were pioneer investors for a long time before 'deeptech' became fashionable again. 👉 When it comes to VCT, there's a context. The 'VC' bit has been a misnomer for the past 20 years. VCTs were launched in 1995 when venture capital looked completely different. Before 2015, managers could invest in MBOs through the scheme, for businesses of any age - it was the more edgy end of private equity, but nowhere near what we now consider as VC. A few classic PE managers like NVM & LivingBridge moved of the market, but for those who have stayed, the PE culture often remains and VC as we know it is sometimes an anathema. My own experience of VCTs has been largely poor. £100k+ in external DD, general misunderstanding of the venture model and finicky compliance with VCT rules that can hamper a company's flexibility. Since 2017, money has poured into VCTs via IFAs. I've wondered if the retail investors understand the industry, or even care. But again, as always, it's buyer beware. TLDR; EIS funds just need to shape up. VCTs need some innovation. WDYT? -- 📍 I advise scale-ups on fundraising M&A and often help their investors, too. 🤝 📧 [email protected]

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Hey Founders out there, have you ever applied for Grants? How was your experience with it? Its usually a perception of "IT HAS TO BE SOME SORT OF MEDICAL , SCIENTIFIC ONLY PROJECT...." THE FACT: The innovation is key... !!! - Is there a major societal problem which needs a solution? - Do YOU have a unique solution for that issue? - Does your solution have it all to become commercial? - Is your team committed to it, like really COMMITTED!? You have to think about it this way: That's tax payer money. Would you want THIS to be funded to become reality?? IF YES, GO FOR IT. We are doing it with Grantify. Those guys seem to have the edge for it. Especially in Tech smart Grants. ITS NOT EASY to become their client, but once you do, your chances to be accepted go from 4.4% to 40-70% so more than 10X. Investors also say it makes you 10X MORE INVESTABLE! The £5k +VAT is worth it. Check it out and apply if you want to get to the next stage LINK BELOW https://lnkd.in/epBkaSke

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Compliance isn't just about ticking boxes. It's a cornerstone of value within recruitment. Running a compliant operation ensures trust, mitigates risk and safeguards your business's reputation. Whether it's tax obligations, IR35 compliance, or candidate referencing. Adherence to regulation is non-negotiable. Acquirers seek businesses with robust compliance framework as they signal reliability and long-term sustainability. Are you prioritising compliance in your recruitment business? It's not just about meeting standards, it's about maximising value and securing your future. Remember… a £ of profit isn’t necessarily a £ of value. And making a quick buck without compliance won’t create value within your business. If you want to read more about how you can add value to your recruitment agency, drop me a message or head over to the website to read the full article I have written on this topic. The link to this has been placed in the comments below. #Compliance #Recruitment #Business #Value

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Today's market for interim ACA accountants in the UK is looking better. Looking at the current landscape, there's good news for interim ACA accountants. The demand for temporary financial expertise has seen a rise, driven by businesses needing flexibility, especially during periods of economic uncertainty. Interim roles offer a practical solution for companies looking to adapt quickly without long-term commitments. What's noteworthy is the range of opportunities. Whether it's managing year-end accounts or overseeing financial restructuring, interim ACA accountants are playing important roles across sectors. There's a significant need for these skills, particularly in helping companies stay compliant and financially sound. Plus, many businesses appreciate the fresh perspectives interim professionals bring. If you're an ACA looking for interim opportunities, the market has potential right now. Companies are keen to leverage your skills and experience. Why not explore new challenges and make a real impact where it's needed most? #findyourforte #accounting #careeropportunities

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Despite the time of year / CGT / economy, there's a few exciting investment opportunities in my network at the moment!... They're all personal connections, so very warm introduction only. None of the raises have started yet, and SEIS/EIS will be available. Let me know if interested! - Series A - MedTech £5m raise (ground breaking product go-to-market / growth) - Seed - Trade App £>1m (national growth of regionally successful product) - Pre-Seed / F&F - £0.1m health product (product dev and sales launch) - Seed - Hospitality Tech £c1m (rapid growth of an existing platform) #fundraise #funding #investment #see #seriesA

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Understanding SEIS and EIS: Boosting Startup Investments What are SEIS and EIS? ➡ SEIS stands for Seed Enterprise Investment Scheme and EIS stands for Enterprise Investment Scheme. These UK government initiatives incentivize investment in startups by offering significant tax breaks to investors. Benefits for Investors: 1️⃣ SEIS: Investors get 50% of their investment back in tax breaks. For example, if they invest £10,000, they'll get £5,000 back. Additionally, all returns from SEIS are exempt from capital gains tax if the shares are sold after at least 3 years. If the startup fails, investors are eligible for loss relief, which could be almost 50% of the loss depending on their tax bracket. 2️⃣ For a £10,000 investment, the net investment is £5,000 after immediate tax relief. With loss relief, capital at risk is further reduced. If an investor pays income tax at a rate of 35%, they can claim up to 35% of their net loss in income tax relief, which would be £1,750 in this example. Therefore, the capital at risk would be about £3,250. 3️⃣ EIS: Similar to SEIS, but with 30% initial tax relief. For a £10,000 investment, investors get £3,000 back instead of £5,000. ⏩ Conclusion: These schemes are fantastic initiatives by the UK government to encourage investment in technology startups. However, many people are unaware of them. To address this, the FCA should relax regulations around private equity investments, and there should be more awareness of SEIS and EIS among UK residents. Despite the existence of these schemes, early-stage capital remains extremely scarce in the UK. #SEIS #EIS #StartupInvestment #UKGovernment #TaxBreaks #EarlyStageFunding #TechStartups #InvestmentIncentives #CapitalGainsTax #LossRelief #PrivateEquity #FCA #Innovation #Entrepreneurship

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Relief for Investors in Small Companies A bit of good news for individual investors and small and medium sized companies: An extension for the enterprise investment scheme (EIS) and the venture capital trust (VCT) scheme. The EIS and the VCT scheme offer tax reliefs to individuals investing in small and medium-sized companies.  A number of conditions must be met for a claim for tax relief to be valid. One of these conditions is that the shares in the company (for EIS relief) or in the VCT are issued before a date specified in the legislation. That date has now been extended from 6 April 2025 to 6 April 2035.  Companies and Investors alike will be relieved - Allowing the schemes to lapse could have lead to a significant gap in early-stage equity finance.

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**5 Ways a Great Accountant Can Help Your UK Business Thrive** Running a successful business is exciting, but managing finances can be complex. That’s where a great accountant , someone who sorts out the numbers, comes in. Here are five key ways they can support your business: 1. **Tax Compliance and Planning** Navigating the UK tax landscape can be tricky. A great accountant not only ensures your business remains compliant with tax laws but also helps with tax planning strategies. By identifying deductions and opportunities, they minimise your tax liabilities and maximise savings. 2. **Cash Flow Management** Cash flow is the lifeblood of any business. An accountant can help manage your inflows and outflows, ensuring you have the liquidity needed to meet obligations and invest in future growth. 3. **Profit Maximisation** Are you making the most of your business’s potential? A skilled accountant can analyse your financials, pinpoint areas of inefficiency, and provide insights to boost profitability, ensuring you get the best return on your efforts. 4. **Cost Control & Efficiency** Business expenses can quickly spiral. Accountants help identify unnecessary costs, streamline operations, and improve efficiency, making sure you keep your finances healthy while running a lean business. 5. **Strategic Financial Planning** Planning for the future is crucial. From budgeting and forecasting to supporting long-term growth strategies, an accountant provides the financial insights needed to make informed decisions that set your business up for lasting success. Partnering with the right accountant allows you to focus on growing your business while they take care of the numbers, helping you thrive today and plan for tomorrow. #Accountancy #TaxPlanning #BusinessGrowth #CashFlowManagement #ProfitMaximisation #FinancialPlanning #BusinessStrategy #SmallBusinessSupport #Entrepreneurship #UKBusiness #Efficiency

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Capital Gains Tax is rising in the UK. The tax has increased effective in the budget yesterday and you can read about that here. Business Asset Disposal Relief (formerly called Entrepreneurs Relief) enabled a business owner to sell their shares as long as they qualified for the relief at 10% CGT on the first £1m, and then 20% over and above that (less their personal allowance). This is being increased to 14% on the first £1m but that change is NOT immediate and as long as the asset is disposed of before the start of the next tax year (6 Apr) . Its going up again for 2026 to 18% - so you can use this in your deal making as you can explain this to sellers and use it as an incentive to sell now before they end up with a higher tax bill. Particularly useful if they are negotiating on price. https://lnkd.in/eDUcgQwX

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Potential Increase in UK Capital Gains Tax (CGT) I haven’t posted about the potential rise in UK Capital Gains Tax (CGT) before, as I was curious to see how things would unfold. My first thought? How do other countries compare when it comes to CGT rates? And no - I’d much rather not see any increase. In some countries, CGT rates align with personal income tax rates (which seems to reflect the UK government’s aim). Others don’t tax capital gains at all. For individuals with dual nationality, dual residency and global assets, CGT can play a significant role in managing income effectively.   A Few Global Highlights Countries with No Capital Gains Tax (CGT): Hong Kong SAR, Isle of Man, Jersey, Saudi Arabia, Singapore, United Arab Emirates Countries Taxing Gains at Personal Income Tax Rates: Australia, Denmark, Thailand Other European Countries: - Finland: 30%-34% - Ireland: 33% - Norway: Up to 38% - Spain: Up to 28%   I’m Jordan—a UK tax specialist, cross-border consultant, and the business owner of Horizon UK Tax Solutions Limited I help businesses and individuals manage cross-border tax issues, offering tailored solutions to meet their needs. Let’s connect! Feel free to message me, and we can set up a time to discuss how I can support your business.   #tax #capitalgains #CGT #crossborder #expats #UKtax #globalmobility #businessgrowth #taxadvice #taxconsulting #globaleconomy #crossborder #internationaltax #taxplanning 

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How to fix a "£22bn black hole" ... Top 50 large corp tax avoiders cost UK £7-13bn annually. Offshoring =£500bn> annually Large Corp Tax Avoidance: 1. HMRC say large corp tax avoidance tax gap (the difference between the amount of tax owed and what is actually paid) = *£1.5 bn annually*​ (ONS) . Scale of Revenue from Top 50 Companies operating in UK: 2. Include global tech giants, pharma, retail, generated hundreds of billions in revenue annually​ eg Amazon, Google, Apple but tax practices & adjustments ref how they report profits locally, substantially decreased tax liabilities. Exact figures depend on how aggressively they've used tax avoidance strategies. eg shifting profits to lower-tax jurisdictions (Ireland / Luxembourg), means their effective tax rate is often 2-5% or ZERO in some cases!! whilst SME's pay 25%!!! remedying could generate c. *£2-6bn annually* Potential Revenue Recapture: 3. If Govt focus on large corps that shift profits abroad or used tax deductions aggressively, clawbacks could amount to £billion annually. If their average effective tax rate increased from 10-15% to closer to 25%, additional revenue would be c. *£2-4 billion* annually (Gov.uk) Analysis by the Public Accounts Committee highlighted companies like Google & Starbucks, likely owe hundreds of millions more if taxed fully on UK profits rather than through complex international arrangements​ Results from Other Countries: 4. France tightening tech giant tax loopholes led to an additional €1/2bn annually (Small Business UK) the UK could generate up to £1bn If UK Govt aggressively targeted the top 50 companies based on revenue generation & past tax avoidance behaviors, a reasonable estimate of potential additional tax revenue = *c.£7-13 billion* annually 5. Dis-incentivising £500bn annually of offshoring / removal of tax revenue from the UK would result in hundreds of thousands of UK jobs returning every single year, along with huge tax revenues currently lost A nominal tax on offshoring of say 10%, to encourage revenue & jobs to remain in the UK would generate £50bn annually, potentially more if many of those jobs remained in the UK 1. £1.5bn 2. £2-6bn 3. £2-4bn 4. £1bn 5. £50bn = £56.5-62.5bn annual increased revenues Now it begs the question, why Keir Starmer Rt Hon Rachel Reeves The Labour Party encourage large corp tax avoidance?? Why would you try to fill a leaking dam with a tea strainer? Instead of chasing money that belongs to us? You're taxing small business owners more & more, claiming we're not the 'hard workers' that need to be looked after. Increasing tax on entrepreneurs, increasing employer NIC (that large corporates pass on to Inside IR35 contractors), encouraging offshoring at record levels, continuing highly skilled work visas that are not needed, when many UK highly skilled workers are out of work It's either total ineptitude or large corp puppet masters are really in charge Which is it Keir? #SME #TaxTheTaxAvoiders #TaxEquality

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PE, VC Funds can't believe their luck - we're staying... Capital gains tax rates on carried interest will be increased to 32% from April 2025. From April 2026, carry will be taxed within the income tax framework but, critically, with “bespoke rules to reflect its unique characteristics” This is a lobbying triumph for the British Venture Capital Association, which was warning darkly that funds would skip off to the EU if the manifesto pledge was implemented. The chancellor has instead settled for a rate that, on the OBR’s numbers, is similar to that in France and the Netherlands. The threat of a mass exodus may indeed have been real, rather than standard posturing, it should be said. It’s not too much harder to run a private equity fund from Paris rather than London. The effect on tax receipts will be considerably lower than projected but, in the end, finding the right balance was more important.

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I've seen a fair amount of finance roles being recruited for recently, with the top point on the "essential" list being, (1) ACA/ACCA/CIMA Qualified. 5 further essential points follow on the spec, all of which skill sets can be excellent without point 1 being a ✅. In the modern day, it surprises me how many employers continue to overlook the QBE market & are living in a somewhat ancient 🌎. Use your brain, or allow a good recruiter to guide you. Unless the sector specifically requires ACA/ACCA/CIMA to be a ✅ box, then employers need to loosen up, stop being so narrow & think outside the box to enhance the pool of candidates they are looking at. A good QBE will compete with a good ACA/ACCA/CIMA, and similarly a not so good QBE will likely be just as average as a not so good ACA/ACCA/CIMA candidate. Have a great Friday people. 👍🏾☕

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As a non-executive director, if you're not networking with PE, you're missing a huge trick! Here's a guide to some of the prominent UK PE funds and their areas of focus: Large UK Private Equity Funds aka "The BIG boys!": 1. CVC Capital Partners - Generalist fund with a strong focus on consumer goods, healthcare, and financial services. 2. Apax Partners - Invests in technology, telecommunications, healthcare, and consumer services. 3. Permira - Targets consumer, healthcare, technology, and financial services sectors. 4. 3i Group plc - Focuses on mid-market investments across a variety of industries including technology, industrials, and consumer goods. 5. EQT Group - Specialises in technology, healthcare, and industrials. Mid-Sized UK Private Equity Funds: 1. Hg - Invests primarily in software and service-oriented businesses. 2. Ardian - Covers a broad spectrum including energy, technology, and financial services. 3. IK INVESTMENT PARTNERS LIMITED - Focuses on industrial technology, healthcare, and consumer products. 4. Cinven - Targets healthcare, financial services, and technology sectors. 5. Bain Capital Ventures Capital - Invests in a range of sectors including retail, healthcare, and industrials. Venture Capital & Growth Funds: 1. Balderton Capital - Focuses on early-stage technology and consumer investments. 2. Index Ventures - Invests in technology, life sciences, and consumer sectors. 3. Octopus Ventures - Specialises in early-stage investments in technology, healthcare, and fintech. 4. Accel - Targets growth-stage investments in technology and consumer sectors. 5. Seedcamp - Focuses on early-stage tech startups and scale-ups. Sector-Specific Funds: - Healthcare: Syncona Limited , Viatris Ventures - Invest in healthcare innovation and biotech. - Technology: Notion Capital , DN Capital - Specialises in tech-driven ventures and growth-stage tech companies. - Energy & Sustainability: Energy Impact Partners, Chrysalix Venture Capital - Focus on sustainable energy and clean tech. What Virtualnonexecs.com does is help you Identify the right fund for your skills and this involves understanding their focus areas, helping you align. We work with numerous PE, VC and Family Offices to identify talent in minutes! Check out: https://lnkd.in/d3na7CEC 🚀 To join Virtualnonexecs: https://lnkd.in/eXBj687 🔥 #nonexecutive #chair #pe #vc

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