Since joining The Peloton a month ago I have been lucky enough to meet with many of our lovely clients, talking through a whole host of tax topics. During the course of these conversations I’ve caught myself thinking a lot about fractals. The fascinating thing about fractals is their infinite complexity: it doesn’t matter how much you zoom in there’s always more to discover. For a particularly mind-bending example check out this animation of the Mandelbrot set.
Tax is so often fractal in nature. You start with a simple question like, “should I incorporate” and before you know it you’re neck deep in HMRC manuals, getting to grips with incorporation relief, assessing how to value the goodwill in your company, reviewing overlap profits, carried forward losses, Stamp Duty Land Tax, shareholders agreements, and on, and on, and on. The sheer range of considerations and their interconnectedness can be overwhelming.
Of course, when answering these sorts of questions, the devil is indeed in the detail. To prevent the process becoming too hellish though it’s important to have a plan. A plan helps us know where to start, what questions to ask, which topics we need to look into and which we can safely ignore.
Over the coming months we’re going to be tackling these big questions head on, laying out how we at The Peloton would approach them. I’m very much looking forward to diving into these topics, cutting through the complexity and hopefully providing a useful reference point for taxpayers wrestling with these issues for the first time.