“My tax bill can’t be that high!”
“I don’t have the money to pay it!!”
Have you ever though or said this when you’ve received your accounts and tax return from your accountant 1 or 2 months before the payment deadline (or maybe even closer to it!)?
Firstly, you should be receiving your accounts and tax return much earlier.
Secondly, you should already have a pretty good idea what you tax bill will be well before the deadline.
And, you should have been trying to save towards this tax bill every month. After all you do have 9 months after the year end to pay the bill.
We encourage all business owners to stay on top of their business financials. So, they know how much profit their business is making throughout the year and saving towards the likely tax bill.
One way we do this is by preparing management reports, monthly or quarterly clearly showing how much profit has been made and how much tax is due on that profit.
We also provide a tax payment calendar for income tax, corporation tax, VAT and PAYE.
We recommend setting up a separate bank account for tax bills and transferring some money to this account every month.
Even better is to have separate accounts for corporation tax, PAYE, and VAT.
Knowing how much tax you need to pay and when, then knowing you are saving towards those tax bills will mean you are far less stressed.
No waking up in the middle of the night wondering how much tax you need to pay or how you can afford to pay it.
Having clarity and peace of mind from knowing how much tax you need to pay means you will be less stressed and can enjoy time away from the business much more.
This is especially important now – summer 2021 as restrictions are being lifted and we get the chance to spend quality time with friends and family.
If you’d like a free 30 minute meeting to discuss how we can help you run the business you want so you can have clarity and peace of mind, please get in touch.