Read the latest news about alternative business finance.
January can be a daunting time for many small business owners, with the Christmas rush finally over and the January sales period looming. It can be tricky to find the time to fill in your tax return this month, however, not submitting it on time can have serious repercussions.
It was recently reported that late tax payments are increasing, with £1.8 billion now owed to HMRC in delayed fees. The government is now taking severe measures to reclaim this money, from fines of over £100, debt collection visits and even seizure of assets.
Most workers in the UK have their taxes automatically deducted from their wages each month, however self-employed business owners are required to manually keep track of the amount of tax that they owe each year. As an independent business owner, it’s important to keep on top of your finances throughout the year, submitting your self-assessment tax return by the 31st January.
How do I submit my self-assessment tax return?
There are plenty of ways to fill in your tax return. If you would prefer to submit your tax return via post you can download the SA100 form from the government website, making sure you post it back before the deadline. Alternatively, many people now find it easier to enter their information into a website form, and submit it online.
How can I pay?
Payments can be made online or via telephone banking, via CHAPS, online by debit or credit card, at your bank or building society or at the Post Office. They can be taken the same working day or anything up to three days – make sure you take this into consideration when deciding which is the best payment method, to avoid missing the deadline!
How do I budget for tax returns?
Two thirds of UK businesses find that December is the worst month for delayed payments, damaging their cash flow at the worst possible time. Make the time to review your invoices and chase suppliers that owe any outstanding payments to your business.
HMRC provide a handy tool on their website for small business owners, which allows you to estimate your total tax costs, including both income tax and national insurance. You only need to enter your weekly or monthly profit estimates to find out your estimate, making sure that you won’t be faced with an unexpectedly high payment.
What if I can’t afford to pay my taxes?
If you have had unexpected expenses this January and are now worrying about paying your taxes on time, a business cash advance could be the perfect solution.
Quick Capital offers simple business funding for companies who accept card payments from their customers. There’s no need to submit business plans and forecasts, which can be inconvenient when you are already struggling to find the time to fill in your tax return. All you need is the last 12 months’ card processing statements.
The simple application is completed over the phone and your funds can be secured within 72 hours, much quicker than a business bank loan! Repayments are made automatically in line with your card turnover and you only pay back when your customers pay you.