The benefits of using a fractional tax specialist for your Indirect tax strategy
In today’s fast-paced business environment, maintaining a robust indirect tax strategy is crucial for organisations aiming to optimise their financial performance and remain compliant with ever-evolving tax regulations. One increasingly popular solution is the use of fractional tax specialists. We’ve discussed the benefits of hiring a fractional Head of Tax at length, but what about for a more specialist, niche tax discipline?
Fractional professionals offer their expertise on a part-time basis, providing targeted support without the need for a full-time hire. Here’s an in-depth look at the benefits of integrating a fractional tax specialist into your indirect tax strategy. But firstly, what is indirect tax?
What is indirect tax?
An indirect tax is collected by one entity in the supply chain, such as a manufacturer or retailer, and paid to the government. The tax is passed onto the consumer by the manufacturer or retailer as part of the purchase price of a good or service. The consumer is ultimately paying the tax by paying more for the product. VAT is an example of indirect tax, and it is a crucial component of any tax strategy.
Indirect tax expertise on-demand
Fractional tax specialists are typically seasoned professionals with extensive experience in various industries. This broad expertise allows them to navigate complex tax regulations and identify opportunities for tax savings. By leveraging their knowledge, your business can gain access to high-level tax strategies and insights without the commitment of a full-time executive.
Cost-effective solution for scaling businesses
One of the most significant advantages of fractional tax specialists is cost efficiency. Hiring a full-time tax professional can be expensive, especially for small and medium-sized enterprises (SMEs). Fractional specialists provide the same level of expertise on a part-time basis, making it a more affordable option. This approach allows businesses to allocate their resources more effectively, ensuring they receive the necessary tax support without straining their budget.
A flexible and scalable solution
Fractional tax specialists offer a flexible solution that can adapt to your business’s changing needs. Whether you require support during peak tax seasons, for specific projects, or on an ongoing basis, fractional specialists can scale their services accordingly. This flexibility ensures that your tax strategy remains robust and responsive to any changes in your business environment or regulatory landscape.
Enhanced indirect tax compliance
Staying compliant with indirect tax regulations is essential to avoid penalties and minimise risk. Fractional tax specialists stay up to date with the latest tax laws and regulations, ensuring your business remains compliant. Their expertise can help identify potential compliance issues before they become problematic, allowing your business to take proactive measures and avoid costly penalties.
Strategic tax planning
A fractional tax specialist can provide strategic tax planning tailored to your business’s unique needs. By analysing your current tax position and identifying opportunities for improvement, they can develop and implement a comprehensive tax strategy that aligns with your overall business goals. This strategic approach can lead to significant tax savings and improved financial performance.
Risk management
Managing tax risks is a critical aspect of any indirect tax strategy. Fractional tax specialists have the experience and knowledge to identify potential tax risks and develop mitigation strategies. By proactively addressing these risks, your business can minimise its exposure to tax-related issues and ensure a more stable financial future.
Increased efficiency
Integrating a fractional tax specialist into your team can lead to increased efficiency in managing your indirect tax obligations. With their expertise, they can streamline tax processes, identify areas for improvement, and implement best practices. This increased efficiency can free up valuable time and resources, allowing your business to focus on core activities and growth opportunities.
Objective perspective
Bringing in a fractional tax specialist can provide your business with an objective perspective on your tax strategy. As external professionals, they can offer unbiased insights and recommendations that may not be apparent to internal team members. This fresh perspective can lead to innovative solutions and improved tax outcomes.
How Brewer Morris can help you source a fractional indirect tax leader for your business
A senior tax professional will always be an asset to businesses looking to enhance their indirect tax strategy without the commitment of a full-time role. By providing expertise, flexibility, and strategic insights, they can help organisations navigate complex tax landscapes effectively.
If you are looking to hire a fractional tax specialist, please don’t hesitate to submit a brief and a member of our team will be in touch.
Alternatively, if you are looking for a new fractional tax opportunity, look at our latest opportunities.
