It is entirely reasonable to worry about your tax bill. For most businesses, HMRC sends easily their biggest bills. The Revenue has, to some extent, more powers than the police, which is more than a little alarming. The amounts are difficult to manage because there are so many taxes, the amounts are so big and they all need paying to different deadlines for most small businesses:
- Business rates are normally paid monthly
- PAYE is paid monthly
- Personal tax is paid on 31st January and maybe 31st July with a complicated payment on account system
- Corporation tax is paid 9 months after your year end
- VAT is paid a month and a week after the quarter end
Hardly surprising people get confused. We have a number of approaches to help make sense of this for you.
The Knowing You Numbers (link Please) section discusses how we can help you understand the profit you need, to make your personal finances work.
We keep track of what needs doing, and when, so we tell you when submissions require preparing. We send out reminders in good time so you know what to do and when. We work with you to ensure you know your tax payments in good time.
We work out how much of your earnings are for you to save or spend, and how much you need to keep back in tax; we encourage our clients to open a tax savings account so the taxes you need to pay are saved as you earn the money. In this way the money is there when the tax falls due.