Accounting For Care & Nursing Homes

As of 2017, the care homes sector houses around 410,000 residents, bolstering the UK economy by £15.9 billion every year. Currently, there are 5,500 service providers in the country, which operate a total of 11,300 care homes.

The ONS also predicts a 36% rise in the number of UK residents aged 85+, increasing the number from 1.5 million in 2015 to 2 million in 2025.

As this sector grows, so will the opportunities to expand your business. You, therefore, need to trust an accounting firm that will not only make sure your books are updated and compliant with UK law, but can also act as your business partner to help you stay competitive.

pebble mill care home

Payroll and Bookkeeping

As a nursing home owner, dealing with the day-to-day operations of your business takes up a huge part of your schedule. Having a specialist team on your side will free up your time, so you can better focus on the big picture.

AK Tax can help you administer payroll, minimise your tax liabilities, and take other time-consuming activities off your hands, including:

  • Payroll accounting— We’ll help you with the administration of payments to your staff (e.g. bonuses, incentives, salary, etc.), setting up pension schemes, and providing regular analysis of staff costs.
  • Cash flow management — We’ll help you record daily business transactions and manage invoices using Xero or other HMRC approved accounting software. You’ll also have access to timely and accurate information, allowing you to see if there are any red flags that may affect your cash flow (e.g. a change in residents paying habits, new legislation), so you can adjust quickly.
  • Cash flow reviews — Be it on a quarterly or annual basis, we’ll review key business metrics regularly to maintain your care home’s financial health. You’ll also find out if you need to pivot quickly or if you have enough capital to expand.
  • Real-time Information service — As it’s legally mandated to send reports each time you pay your employees (via Full Payment Submission), we’ll help you submit payroll information to the HMRC accurately and on time.
  • Filing of all mandatory paperwork — Delegate the tedious task of filing paperwork, including PAYE, insurance, sick pay, and maternity pay.
  • Tax return filing — Maximise your tax returns by allowing us to work on your Capital Allowance Claims, VAT Reclaims, and Corporate Tax Returns, as well as completing statutory forms and year-end returns for your employees.

Business Support

AK Tax will not only provide specialised accounting services for your nursing home. We will also work with you closely—much like a business partner would—so you’ll have a robust system in place that will let you grow in the face of increasing demands and high competition.

We offer the following services:

  • Business Advisory — Whether your nursing or care home is expanding gradually or fast, we’ll work with you to help with growth transition (e.g. hiring employees, finding more space) and ultimately improve your profits. 
  • Benchmarking — We’ll review your current finances and compare it with previous years, so you’ll see your year-over-year growth and discern any trends. With this data, we can then set realistic financial goals and plan all the ways to hit them.
  • Business Restructuring — We’ll review your care home’s current business structure and provide assistance on how to best set up your operations with efficiency in mind.
  • Financial Projections — We’ll give you regular profit projections, so you can accurately plan for short- and long-term profitability. You can also minimise any unwelcome surprises, as you’ll be able to see any upcoming surplus or deficit, be that with cleaning supplies that increased in prices, switching vendors for medical equipment, or if you had a higher tax liability.
  • Tax Planning Strategies — We’ll come up with a customised strategy that’s designed to cater to the specific needs of your business, so you can minimise your tax liabilities and make sure your care home can weather any economic storm.

Crispin Court Care Home

Sale and Acquisition of Care Homes

The nursing home sector is a potentially lucrative business to get into, and the sale and acquisition of care homes is a huge part of it. You, however, wouldn’t want to embark on this investment without the right accountant, as poor financial decisions may lead to lost revenue and a poor return on investment.

At AK Tax, we can provide assistance with:

  • Negotiations — We’ll help you scout for the right care home and acquire them by doing our due diligence, negotiating terms, and creating a tax-efficient structure. We also have a network of contacts that will help you sell or buy homes at the right price, minimising any further costs.
  • Funding — With our team on your side, we’ll help you find the best funding options and improve your chances of getting any loans approved.
  • Relevant Taxation — Be it for Capital Allowances, Corporation Tax, Stamp Duty Land Tax, or Capital Gains tax, our team will help you minimise any tax liabilities via strategic planning.

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