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No one ever really tells you how to pick an accountant. One of the most important things to research is their values. Knowing what an accounting firm values tells you so much about the kind of people you’re going to work with and the relationship you’ll be entering into. If you’re looking for your first accountant, location may seem like the most sensible search criteria. But in a digital world, geography doesn’t need to be the deciding factor. Many accountants operate online and work with clients all over the country. If you’re looking to switch accountants, a firm’s service offering may play into the decision. You might be looking for help with a specific service your existing accountant doesn’t provide. Let’s say you find a bunch of accounting firms in the right location offering the services you know you need. Then what? How do you choose between all the options? This is where values come in, and why they’re so important. Values are important in all relationships. In any partnership you enter into, each partner will bring their own set of values to the table. When those values match, a partnership has strong foundations. It’s the same in professional relationships. The best accountant for you is one that shares your values. They’ll care about the same fundamental things you care about, and place importance on the same principles you do. At Bloom, family is the most important value My main reason for starting a business was flexibility and freedom. To know if I need to drop something at a moment’s notice I could afford to, without any hassle or grief. To have the opportunity and ability to be more present in my children’s lives, especially as they are growing up. To be able to do the daily school run, and be around for them. I know I wouldn’t have that level of flexibility and opportunity had I continued working in the corporate world. In the fast-paced world we live in, it's all too easy to get swept up in the daily rat race, chasing after money and success. And I get it, I've been there too. But what I've come to realise is how easily this pursuit can blur our focus on what truly matters in life. The never-ending grind might bring short-term gains, but it can also mean losing out on precious moments with family, friends, and the things that ignite our passions. At Bloom, we've embraced the importance of striking a balance that lets us achieve our goals without sacrificing the joys and meaningful connections that make life truly worthwhile. Beyond just crunching numbers and dealing with spreadsheets, our mission is to help our clients build thriving businesses that cherish what's genuinely important in their lives. It's about finding success without losing sight of the things that bring us true enjoyment and happiness. A life-changing experience within my family completely shifted my outlook on both business and life. Honestly, it shouldn't have taken such a drastic event to open my eyes to the significance of making time for the people who truly matter. But it did, and it was a wake-up call that taught me a crucial lesson. Now, I wholeheartedly understand the value of cherishing moments with our loved ones and ensuring they remain a priority in our busy lives. It's a lesson I carry with me every day, and it's at the core of how I approach my work and personal life. My mission is to help business owners find the same freedom and flexibility without having to go through a big wake up call or life-altering event. At Bloom we don’t hope for balance to eventually happen. We help our clients create it. We make sure they can fulfil their ambition of running a successful business without missing out on the important things in life. Our values At Bloom, our values are at the heart of everything we do. They're the foundation of our culture, driving our daily actions – how we behave, the choices we make, and how we work with and treat others.

Buy-to-let property investors Mr & Mrs Hanif had three major goals for their property income: To provide for a fulfilling lifestyle To save up for their daughter’s further education. To provide financial security for their family’s future Both husband and wife had been building up their property portfolios since 2002, and with a review each year, they were confidently operating through the most tax efficient structure… …until 2017. A government tax change would mean a reduction in the couple’s disposable income and a devastating increase in tax Prior to 2017, you could deduct finance costs, like mortgage interest from your rental income. In 2017 HMRC started phasing out the finance costs you could deduct over a 4 year period, and simultaneously introduced a new relief called “tax credit”. These tax credits, which came into full effect from April 2020, meant that landlords could no longer deduct any of their mortgage interest from their rental income when calculating their taxable profit. Instead, landlords would receive a 20% tax relief on mortgage interest payments. Sounds fair - right? The problem is, as the couple’s portfolio increased to 20+ properties over the next couple of years, the additional income tax was crushing them. Mr and Mrs Imran’s property partnership held £4.8m of property in a mixed residential portfolio, mortgaged and generating £285,000 of gross rents per annum. With mortgage interest of £95,000 per year and other costs, the net profit was around £100,000 per year. The change in tax relief for the finance costs meant that the profit would be pushed from £100,000 to £195,000 pa, into the additional (45%) rate band, and then only allow a 20% tax credit on the mortgage interest, costing approximately £21,000 more in tax each year. Mr and Mrs Hanif were desperate to find a way to save some tax. Anybody would be. Taking all things into account, it was decided that the best solution for the Hanif’s would be to incorporate the partnership. As it was a relatively new rule, we carried out research, attended property tax seminars and spoke to similar property tax experts in the field. Mr and Mrs Hanif had been a client of ours since 2014, after becoming increasingly frustrated by the lack of communication and support from their previous accountants. At Bloom, our mission is to help young families run successful businesses without compromising their families and their lives. Your goal of saving for your children’s education may not be important to every accountant. But it is of the utmost importance to us. We didn’t set out to be traditional thinking accountants. We believe in family first. Which is why it was so important to us to understand everything we could about the new legislation, and put the Hanif family back in a position of control. We found a series of steps could be taken to potentially wipe out these additional tax costs for the couple - but they would have to be carried out meticulously. The end result would be to transfer all current properties held individually into a limited company structure. Caution was needed because: Typically the sale of an asset from an individual that is connected to the limited company would incur stamp duty. In addition, the same transaction potentially would give rise to capital gains tax. At the time, they held approximately 23 properties, so the stamp duty and capital gains tax implications would be huge - we’re talking hundreds of thousands of pounds. We would need to form a partnership, run it for a few years and then incorporate the partnership into a limited company. With certain tax reliefs available this would completely mitigate the stamp duty and capital gains tax. Once incorporated, the company could be structured in such a way that would give the inheritance tax protection they so desperately sought for their young daughter. Overall, the couple gained a £400k directors loan account, and saved over £3m in taxes across stamp duty, capital gains tax, income tax and inheritance tax. We advised that a full accounting system be installed so that we all had full transparency over the figures, and this would aid the incorporation process. In addition, it would help in the future as each property’ s profitability would be able to be analysed in meticulous detail. We worked closely with Mr and Mrs Hanif, ensuring all the correct information for each property was collected, including getting the properties professionally valued. Incorporating the partnership resulted in HUGE tax savings for Mr and Mrs Imran: There was an added benefit in the creation of a credit directors loan account of £410,000. This meant that the couple had the potential to draw down £410k from the company completely tax free! The couple saved over £3m in taxes across stamp duty, capital gains tax, income tax and inheritance tax. Mr and Mrs Hanif were absolutely over the moon that we were able to save so much money. This money could be used to fund their current lifestyle - take the ski holidays they so loved and go on adventures. It would provide for their daughters future and also the future of their business - investing in more properties. Work with accountants who will look at every possibility to protect the things you care about Every business owner's goals and circumstances are different. Although you may not need a property incorporation, tax legislation in itself is huge and not a burden to carry on your own. The good news is, there are tax saving opportunities out there. You just need an accountant you can trust to look at all the possible legal avenues. We’re chartered tax advisers and have the skill and expertise to help clients save as much as tax possible - look into our tax diagnostic service to see how we could help you. Most importantly, we know what family means. If you’re feeling like the balance is off and you need support to be able to prioritise the most important things in life - Bloom accounting is designed for you.

Relatively new to running her own healthcare business, Mrs Brighton didn’t realise she was paying excessive amounts of income tax. She and her husband hoped to retire to their newly-built house in Africa, but money was slipping through the net that could have been going towards retirement. Feeling frustrated about how much tax she was paying, Mrs Brighton sought our trusted accounting advice to shed some light on what was going on. We soon found a simple tweak could give her enormous savings. As a new entrepreneur, Mrs Brighton wasn’t aware certain actions could have big tax implications. After a career working as a nurse and caregiver, Mrs Brighton decided to switch her focus in 2018, setting up her own business providing high-quality in-home healthcare. It was soon generating good revenue, but this success wasn’t reflected in her take-home pay. Unaware of the tax implications, she was drawing on company funds to make up her salary and dividends. As an inexperienced business owner, it was an understandable mistake to assume the money earnt was hers. It was her company after all, so she believed she could take it as and when she pleased. However, it meant she wasn’t taking money out in the most tax-efficient way. The way she accessed her salary triggered excessive amounts of tax to be paid. She needed to find a way of drawing money from the business while minimising tax exposure. With the idea of retirement slipping further away with each tax payment, Mrs Brighton felt confused and deflated. When she came to us, we sat down with Mrs Brighton and listened to her challenges and problems. It was understandable she was frustrated; she was putting long hours into the business, not just coordinating her team, but also doing a lot of the care work itself. To examine where Mrs Brighton could save on income tax, we first had to lay the groundwork. The financial health of a business can be thought of like a garden, with bookkeeping as the primary maintenance. Making sure you have clear, clean books is like cutting down the overgrowth, allowing you to then see where further work needs to be done. In other words, only once your accounts are in order can you see what’s really going on in the business. After talking to Mrs Brighton, the first thing we did was introduce her to our bespoke Virtual Finance Office where we got her accounting systems and books cleaned up and up to date. Her confusion transformed into confidence. Now able to see the financial health of her business at any point in time, this newfound clarity over her business numbers gave Mrs Brighton peace of mind. It meant she could make key decisions backed up by clear data; decisions which allowed her to free up her time. Now it was time to examine how she could extract money from the business while paying minimal tax. One change to the share structure gave colossal savings. Discovering Mrs Brighton’s husband had a major role in the operations of the business, we advised her to gift half of her shares to Mr Brighton for the tax benefit it would provide. The savings were drastic: Mr and Mrs Brighton now paid £3,000 each in income tax. When they came to us, they were paying £16,500. It meant a tax saving of £13,500 per year, giving at least £82,500 savings over the next 5 years. In addition to paying her husband a modest salary, it meant Mr and Mrs Brighton could now extract £100,000 per annum and with paying a minimal level of income tax. Mr and Mrs Brighton went from worrying about their retirement plans to feeling grateful and relieved. Now reaping the rewards they deserve from their business, they have more income to spend on their retirement home and personal needs. Before, Mrs Brighton felt stretched thin, spending most of her time working in the business instead of working on it. Now, she’s able to take a step back and make decisions that allow her to spend time doing what she does best. You deserve trusted accounting support that gives you the same confidence and clarity. Running a business is challenging, and even the best entrepreneurs make many mistakes along the way. Bringing on board trusted accounting support helps minimise those errors quickly, saving time, money and taking the weight of running a business off your shoulders. As chartered tax advisors and accountants, we’re here to provide that expert support so you have time to prioritise the most important things in life. Whether you’re working towards retirement or want to spend more time with family as your kids grow up, you deserve the freedom and time to spend where it matters most . If you’d like to find out how our family-centred accounting could support your business, book your Business Breakthrough Session to get started.

Bloom’s partnership with B1G1 began in January 2021, and so far we have created over 20,000 impacts across the globe. How Buy1Give1 works Founded in 2007 in Singapore by Masami Sato, B1G1 has since grown into a global initiative with more than 2,700 purpose driven businesses and individuals as members. B1G1’s mission is simple but powerful: to create a world where giving is a part of everyday business and personal transactions. B1G1 achieves this by enabling businesses to embed giving into their daily operations, and by providing a platform for individuals to give to causes that they care about. Their charitable giving model is based on the idea of “micro-giving,” which means that small amounts of money can make a big impact. The company works with a network of carefully vetted and trusted giving projects in various parts of the world. These projects focus on a wide range of issues such as education, health, poverty, environment, and more. Each of the projects can be selected to directly support one or more of the UN Sustainable Development Goals, so it’s easy to align them with your business goals and values. Bloom’s support for the Sustainable Development Goals  Bloom has chosen UN SDG’s 3: Good Health and Well-Being, 6: Clean Water and Sanitation and 11: Sustainable Cities and Communities as the goals to focus on, however we donate to such a wonderful variety of projects that no goal misses out!

A question I get asked all the time is: ‘What can I take out of my business?’ and ‘how do I save more tax?’ Well, the quick answer is, ‘there’s up to 32 ways to get value out of your business, tax efficiently.’ Yep, that’s a lot of ways