Introducing.....
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What is the ERNIflex solution?
The ERNIflex solution is an HMRC-compliant solution used where using dormant companies that hold tax credits on their Corporation Tax (CT) accounts, typically these may have arisen from successful Research & Development (R&D) claims, we purchase and rebrand to your business, and then offset tax credits against your PAYE account.
How the ERNIflex Solution works
ERNIflex and it's partners acquire the dormant company and hold it dormant until a suitable client company, like yours, is identified or comes forward.
Rebranding
If your company is a match, the dormant company is rebranded to reflect your company's identity.
The rebranded entity becomes the official employer of your labour force.
Tax Credit Utilisation
HMRC has statutory authority to offset an R & D (Research & Development) Tax Credit against ENIC ( Employer National Insurance Contributions) under the "cross-tax-sett-off-power", in the Finance Act 2008, section 130
Cost Reductions
The credit is used at a rate equivalent to the employers NIC (typically 15% of payroll) less a 25% guaranteed reduction.
This is a completely free service and requires no heavy lifting from your side as we do all the administrative work.
Qualification
Your gross payroll per annum is over £1m
(No maximum as we currently have access to £1 billion + of tax credits)
Examples per annum :
Gross Approx NI Minimum Cost
Pay roll Contributions Reduction (25%)
£4m £400k £100k
£10m £ 1m £250k
£25m £2.5m £625k
£50m £5m £1.25m
£100m £10m £2.5m
NI contributions calculated for illustration at 10% but are typically anything between 8% and 11% of Gross payroll as a rule of thumb.
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Tax Credit Offsetting
Tax Credit Offsetting
Tax Credit Offsetting
HMRC allows the offsetting of one tax duty against another.
This principle was established in the 1990's after the merger of Inland Revenue and Customs & Excise - which we now know as HMRC.
For instance, if a company is due a VAT refund but has a PAYE liability, HMRC can and do legally offset one against the other. This same principle under pins the BPR Solution
Regulatory Assurance
Tax Credit Offsetting
Tax Credit Offsetting
The practice has been recently confirmed as standard in HMRC's own community forums.
Our partners have been operating this since 2016.
As long as the business relationship is commercial in nature and all taxes are paid in full, HMRC have no objection to the offsetting of tax credits in this way.
Summary of Benefits
Tax Credit Offsetting
Summary of Benefits
* Significant savings on reducing employers national insurance contributions
(minimum 25%)
* Fully HMRC Compliant and legally established practice
* Efficient use of dormant tax credits that would otherwise be lost
* No risk of tax avoidance or evasion as HMRC receives all due payments
* ERNIflex carry out all the administration work, so no heavy lifting on your part
* There is ZERO cost to engage and access the above benefits
Book a Meeting & Overview Today
Enjoy the enhanced cash flow benefits within the next 2 to 4 weeks.