Hi there,

Not every case our team deals with fits into one neat category. This one needed two things solved at the same time, and they had to work together properly.

A dental business in the South East needed start up finance for a newly incorporated entity, and at the same time a substantial refinance of an existing company loan. On its own, either one is manageable. Together, they created a genuine structuring problem.

The issue was moving money between the two companies. Lending to the established entity was fine. Transferring those funds to the new company raised questions under HMRC's loan relationship rules, and if you get that wrong, it can cause real problems later, not just an awkward conversation.

Our finance team worked through it properly. Legal documentation, input from the client's tax advisors, and a structure that satisfied the lender and HMRC both.

The result was a full loan of around £800,000, covering the refinance and the start up finance together.

I do not think most people realise how much of this job is about structure, not just numbers. Get the structure wrong and the numbers do not matter.

If your situation involves more than one company or anything that touches HMRC's rules, come and talk to the team before you commit to anything. Whether it is start up finance or a refinance, get in touch here and we will work out the right structure together.

Start Your Own Dental Practice

Speak soon,

Arun