A taxing problem
28 August 2012
Q: My chief financial officer is concerned that we will incur a high tax rate on the benefits we deliver from our savings programme. How can we ensure that the Inland Revenue doesn’t take a large part of the improved profitability we deliver ?
A: Denis Kenny, managing director of QP Group, writes: In this case, your chief financial officer is right to think of the impact of tax on savings. You should always keep in mind post-tax, as opposed to pre-tax, savings when designing your purchasing organisation and processes.
One option, which may sound dramatic but can pay...