NEVER LET HMRC SNEAK UP ON YOU
There are few things more disturbing than being hit with a tax bill
that you simply hadn’t thought about and in truth, there really is no
excuse for not thinking about it.
HMRC rules say you need to pay an estimate of your tax liability for the following year to 5 April.
Half of that amount is payable by you at the end of January with the other half due at the end of
July. However, it’s well worth noting that by planning ahead and having all your facts and figures
at your fingertips and in good time, it may be possible for you to reduce that payment, or under
certain circumstances avoid it all together.
Sound too good to be true? Well one of the reasons this could apply would be if you’ve done
your tax return to 5 April and your liability is less than it was the previous year. There are a
variety of other instances when your payment may be reduced or in fact (and even better)
you may be due a refund. It isn’t really possible to delve into all the complexities and whys and
wherefores in an article of this length, so my advice is, as always, to find yourself some sound
professional financial input and support which will ensure that you and your business are always
well-abreast of all your tax liabilities and are also able to take full advantage of a situation where
tax isn’t as high as you thought, or if a refund is due.
None of us like nasty financial surprises sneaking round the corner and yelling ‘Boo’ when we
least expect them. And it’s equally important for you to plan ahead whether business is brisk
or a bit on the lacklustre side. Closing your eyes to due dates for tax payments as well as being
unaware of what amounts are due is not good for the well-being of you, your wallet, your peace
of mind or your business. Forward planning and budgeting will not only help you shape your cashflow but will also put you firmly in control of your business and give you enough leeway, timewise, so you won’t be thrown into disarray by an unexpected and scarily larger than anticipated
tax bill. It is of course also important to bear in mind
that failure to pay on time incurs penalties (which in turn
will accrue interest if not dealt with in a timely manner).
So, leaving things until the last moment and not planning
ahead isn’t a viable option under any circumstances.
IT NEVER HURTS TO GET SOMEONE
IN TO TAKE A CLOSER LOOK
AT YOUR FIGURES
Carol Webb
Owner and founder of Cashtrak Bookkeeping and Payroll Services based in High Wycombe
01865 522785 Mob 07941 529785 | www.cashtrak.co.uk | [email protected]
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