Last Minute Panic!
We’ve reached February and survived Self Assessment and the dreaded date of 31st January, what now! For those who have to pay tax, congratulations! You have a thriving business. If you have had a repayment, you will need to grow your business and make a profit and pay Tax! By now you will, be feeling stressed out and be contemplating some form of relaxation, if only!
So what happened this year and how can we make it better?
Expense claims not permitted
• A three-piece suite for my partner to sit on when I am doing my tax return
• Birthday drinks at a night club
• Vet fees for a pet rabbit
• Hotel room service – candles and Prosecco
• £4.50 for sausage and chips meal for 250 days
Top excuses for not getting the tax return in on time
• I couldn’t file my return on time, as my wife has been seeing aliens and won’t let me enter the house
• I’ve been far too busy touring the country with my one-man play
• My ex-wife left my tax return upstairs, but I suffer from vertigo and can’t go to retrieve it
• My business doesn’t really do anything
• I spilled coffee on it
Joking apart, now is a time for reflection and a re-appraisal of our businesses. Are we owed money that we knew nothing about? Would we have made a profit, had we followed through and sent out invoices on time and followed them up?
A study by Direct Line Business found that 40% of small businesses who wrote off debts didn’t know how much was owed by their debtors. Additionally, 82% had balances outstanding from the previous year! To be successful, businesses need to be aware of their Cash Flow!
Is to keep a watchful eye on income and expenditure and to recognise what expenditure is most effective in creating income. This is achievable by using a dedicated spreadsheet which calculates Income and Expenditure, or an online cloud accounting systems or individual Apps. All methods can be used on a smart phone or tablet, making it possible to record your finances on the go and keep up to date. By doing this you will keep HMRC, the Bank and your Accountant happy and you will be able to sleep at night!
If you would like to discuss anything in this blog further, please contact me
Email firstname.lastname@example.org or phone 07586 251284