A timely tax return can help cash flow
We have now passed the 31 January deadline for the submission of self assessment tax returns and the payment of tax. We’ve had some great results for numerous clients who have received tax refunds since the returns were sent in to HM Revenue and Customs.
Occasionally these refunds arise because of the payments on account system. Tax payments are made in two instalments ‘on account’ on 31 July and 31 January. A refund arises when the payments on account exceed the final liability for the year. However, if the accounts figures had been submitted to the Revenue before 31 July then the payment on account could have been reduced to the actual amount of tax outstanding.
I often hear from my clients that cash flow and planning issues are crucial to their business trying to stay competitive in today’s economic environment. If this is the case in your business then it’s worth considering getting your accounts prepared on a timely basis to ease the pressure on cash flow by avoiding overpaying tax.