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Business

Millions going begging in unclaimed allowances, says Portal Tax Claims boss

By: Danny Boyle

Published: 14:00, 11 April 2013

Shaun Murphy, managing director of Portal Tax Claims, based on Medway City Estate

Tax allowances are proving just capital for job creation at a specialist finance business – but millions of pounds are going begging.

Portal Tax Claims, based on Medway City Estate, is one of few UK firms that understand the delphic world of capital allowances (CA).

Part of the Portal Group of financial companies that already employs 120 people in Medway, it needs an extra three people a month to cope with spectacular growth.

Many are shifting from London jobs to Medway. “We have high-quality staff who don’t want to go to London, don’t like the travelling,” says Shaun Murphy, co-founder and managing director (pictured right).

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“We tend to pay London wages because ours is such a specialist market.”

The Chancellor is forever tinkering with CA, making it hard for professional advisers, let alone their business clients, to know what can be claimed. They are available to businesses investing in commercial property and plant and machinery. Mr Murphy says that typically it can reclaim at least a fifth of a building’s cost – often more – as tax relief. It has already made more than 3,000 successful claims.

“We are trying to make people aware they are sitting on a golden nugget. In these days of recession, and increasing costs, anything we can do to legitimately reduce their cost base has to be good.

“On a £1 million hotel, we can get a capital allowance of £350,000. It’s a very good way of correctly increasing their bottom line. “

Portal estimates about 90% of UK businesses have unclaimed allowances tied up in their commercial property, and an estimated 6,175 firms in the county could be owed a tax break windfall around £220m.

Portal works with 1,300 professionals, and has joint ventures with Towergate, Matrix and other insurance brokers. It has helped football and rugby clubs make substantial CA claims. From April 2014, all lawyers will have to prepare a CA report, more potential business for Portal.

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The company has pioneered surveying software that has worldwide sales potential. “It’s about understanding people’s needs. People are bombarded daily on how to save money and there’s a lot of scepticism in the market.”

Portal is paid a fee of 6% of identified CA. “If we fail to find at least £5,000, it’s free,” explains Mr Murphy. “Out of every 100 clients we see, at least 65% haven’t made a full claim. Billions of pounds are going begging. It’s been shrouded in complexity and we’ve broken it down.”

Portal may have a high national profile, but Mr Murphy admits it does not have a large presence in Kent.

Turnover has jumped from £5m to £13m in two years, returning around 17% profit.

Looking ahead five years, Mr Murphy expects job numbers to rise to about 300, and turnover to £50m. That level of growth would mean moving, but Mr Murphy, who was brought up in Walderslade, says it would not mean going beyond Gillingham.

“I’ve been to about 70% of the world’s cities, got properties around the place, but this is my home.”

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