Failed to plan for tax payments? Not a problem…

One of the biggest issues our customers face is failing to plan for the businesses VAT and Corporation tax payments. In an ideal world all our clients would put 20% of all income into a separate account to cover Tax payments throughout the year, but even the businesses that do this can still fall short when it comes to paying HMRC.

Unfortunately, tax is not a business expense that you can get away without paying. If you don't pay on time, you can be subject to high interest charges, fines and in some instances can even be issued with a winding up order for failure to pay your tax obligations on time.

The reason for this is that the government view tax as a necessary payment and money that is owed to the state. VAT is not deemed as a buffer for a businesses cash flow, but a source of income for the government.

Here we set out ways in which you can ensure your business tax payments are paid on time.

1.Time to pay

HMRC offer a solution that allows you to have more time to pay. This needs to be agreed with HMRC direct and there needs to be a valid issue why you need this time to pay. Whilst this can be a cost-effective solution in the short term, this can lead to ongoing cash flow problems when the next tax payment is due and HMRC may be unwilling to offer more time to pay again.

2. Separate Account

As outlined above, you can ensure you have the available funds for VAT and Corporation Tax payments by putting 20% of all income into a separate account throughout the year. When VAT or Corporation Tax becomes payable then the funds accumulated in the second account can go towards paying the balance.

3. Tax Funding

There are specific finance products available now from a range of lenders that enable businesses to fund the quarterly VAT returns and the annual Corporation Tax bill.

The facility is simple to apply for and is unsecured with no personal guarantees required under £150,000. Businesses only need to fund the individual VAT return or Tax Bill, they are not signed into lengthy finance agreements and ongoing contracts. Interest is charged at a fixed rate % of the total amount to be borrowed and HMRC are paid directly, leaving the business to get on and make more money.

More and more businesses are opting to use finance to pay for tax payments as it allows for easier budgeting throughout the year, improves cash flow and gives businesses a facility that they can use as and when it is required.

If you are interested in finding out more about tax funding or need any help with managing your tax payments more effectively please give us a call or read more here. 

Things you didn't know about Commercial Finance

"We have recently moved to Stephens Accountants and it’s the best decision we could have made. Looking for a new accountant can be a little daunting but we were put at ease with their very approachable and friendly attitude. They have helped us and explained things we weren’t quite sure about when it came to our Year End. They were very knowledgeable about the accounts software that we use which made it so much easier. All in all, we’re happy."

Julie Wombwell, Accounts & Payroll Manager. Cottage Woodcraft Ltd.

"Stephens Accountants have been our accountant since we first established in business. In this time Sean & his staff take care of all of our accountancy needs leaving us to take care of our business. I can also rest knowing that our business is in safe hands & if we need to that Sean & his team are there to answer any Tax/financial or business related questions we may have. We have used various accountants for other projects in the past & find that none of them come close to personal, professional service that Stephens Accountants provide. We are proud to call Stephens Accountants our accountants & look forward to doing many years of business with them. "

Sallyann Wheeler & Craig Gallimore A & S Catering Services.

"I've been using Stephens Accountants for the past year since my last accountant let me down, and I've been very impressed with the service I've received. The companies professionalism and understanding was impressive from the start. Stephens have been very proactive in dealing with any issues that have arisen during my time with them. Highly recommended."

Simon Brayshaw. POP Architectural Ltd.

"Stephens Accountants Limited are a helpful, friendly, approachable and professional company, they speak in terms that I understand, any questions or queries that I may have are promptly and efficiently answered, I would have no hesitation in recommending them to anyone."

Nigel Martin. N.M.P.S. Nigel Martin Packaging Services.

"We are very happy with the service received from Stephens Accountants. The promptness of response and helpfulness has been great in our first year of trading."

Julie Stead/Russ Smales. Russcott (Yorkshire) Ltd.

"Accountancy speak into understandable language. The team is a pleasure to work with."

"I am so impressed with Stephen's accountancy. They make it so simple. I simply plug in the sales and purchases invoices and cash receipts, send across a backup and Stephen's do the rest. All the bank reconciliation and management accounts. And generally on the same day. Since using their services I always feel up to date and have the confidence to take managerial decisions in the running of the business. They are knowledgeable, informative and very nice people."

Jacqui Brooks. The New Inn Public House (Walton) Ltd.

"We have recently moved to Stephens Accountants and it’s the best decision we could have made. Looking for a new accountant can be a little daunting but we were put at ease with their very approachable and friendly attitude. They have helped us and explained things we weren’t quite sure about when it came to our Year End. They were very knowledgeable about the accounts software that we use which made it so much easier. All in all, we’re happy."

Julie Wombwell, Accounts & Payroll Manager. Cottage Woodcraft Ltd.

"Stephens Accountants have been our accountant since we first established in business. In this time Sean & his staff take care of all of our accountancy needs leaving us to take care of our business. I can also rest knowing that our business is in safe hands & if we need to that Sean & his team are there to answer any Tax/financial or business related questions we may have. We have used various accountants for other projects in the past & find that none of them come close to personal, professional service that Stephens Accountants provide. We are proud to call Stephens Accountants our accountants & look forward to doing many years of business with them. "

Sallyann Wheeler & Craig Gallimore A & S Catering Services.

"I've been using Stephens Accountants for the past year since my last accountant let me down, and I've been very impressed with the service I've received. The companies professionalism and understanding was impressive from the start. Stephens have been very proactive in dealing with any issues that have arisen during my time with them. Highly recommended."

Simon Brayshaw. POP Architectural Ltd.

"Stephens Accountants Limited are a helpful, friendly, approachable and professional company, they speak in terms that I understand, any questions or queries that I may have are promptly and efficiently answered, I would have no hesitation in recommending them to anyone."

Nigel Martin. N.M.P.S. Nigel Martin Packaging Services.

"We are very happy with the service received from Stephens Accountants. The promptness of response and helpfulness has been great in our first year of trading."

Julie Stead/Russ Smales. Russcott (Yorkshire) Ltd.

"Accountancy speak into understandable language. The team is a pleasure to work with."

"I am so impressed with Stephen's accountancy. They make it so simple. I simply plug in the sales and purchases invoices and cash receipts, send across a backup and Stephen's do the rest. All the bank reconciliation and management accounts. And generally on the same day. Since using their services I always feel up to date and have the confidence to take managerial decisions in the running of the business. They are knowledgeable, informative and very nice people."

Jacqui Brooks. The New Inn Public House (Walton) Ltd.

"We have recently moved to Stephens Accountants and it’s the best decision we could have made. Looking for a new accountant can be a little daunting but we were put at ease with their very approachable and friendly attitude. They have helped us and explained things we weren’t quite sure about when it came to our Year End. They were very knowledgeable about the accounts software that we use which made it so much easier. All in all, we’re happy."

Julie Wombwell, Accounts & Payroll Manager. Cottage Woodcraft Ltd.

"Stephens Accountants have been our accountant since we first established in business. In this time Sean & his staff take care of all of our accountancy needs leaving us to take care of our business. I can also rest knowing that our business is in safe hands & if we need to that Sean & his team are there to answer any Tax/financial or business related questions we may have. We have used various accountants for other projects in the past & find that none of them come close to personal, professional service that Stephens Accountants provide. We are proud to call Stephens Accountants our accountants & look forward to doing many years of business with them. "

Sallyann Wheeler & Craig Gallimore A & S Catering Services.

"I've been using Stephens Accountants for the past year since my last accountant let me down, and I've been very impressed with the service I've received. The companies professionalism and understanding was impressive from the start. Stephens have been very proactive in dealing with any issues that have arisen during my time with them. Highly recommended."

Simon Brayshaw. POP Architectural Ltd.

"Stephens Accountants Limited are a helpful, friendly, approachable and professional company, they speak in terms that I understand, any questions or queries that I may have are promptly and efficiently answered, I would have no hesitation in recommending them to anyone."

Nigel Martin. N.M.P.S. Nigel Martin Packaging Services.

"We are very happy with the service received from Stephens Accountants. The promptness of response and helpfulness has been great in our first year of trading."

Julie Stead/Russ Smales. Russcott (Yorkshire) Ltd.

"Accountancy speak into understandable language. The team is a pleasure to work with."

"I am so impressed with Stephen's accountancy. They make it so simple. I simply plug in the sales and purchases invoices and cash receipts, send across a backup and Stephen's do the rest. All the bank reconciliation and management accounts. And generally on the same day. Since using their services I always feel up to date and have the confidence to take managerial decisions in the running of the business. They are knowledgeable, informative and very nice people."

Jacqui Brooks. The New Inn Public House (Walton) Ltd.

"We have recently moved to Stephens Accountants and it’s the best decision we could have made. Looking for a new accountant can be a little daunting but we were put at ease with their very approachable and friendly attitude. They have helped us and explained things we weren’t quite sure about when it came to our Year End. They were very knowledgeable about the accounts software that we use which made it so much easier. All in all, we’re happy."

Julie Wombwell, Accounts & Payroll Manager. Cottage Woodcraft Ltd.

"Stephens Accountants have been our accountant since we first established in business. In this time Sean & his staff take care of all of our accountancy needs leaving us to take care of our business. I can also rest knowing that our business is in safe hands & if we need to that Sean & his team are there to answer any Tax/financial or business related questions we may have. We have used various accountants for other projects in the past & find that none of them come close to personal, professional service that Stephens Accountants provide. We are proud to call Stephens Accountants our accountants & look forward to doing many years of business with them. "

Sallyann Wheeler & Craig Gallimore A & S Catering Services.

"I've been using Stephens Accountants for the past year since my last accountant let me down, and I've been very impressed with the service I've received. The companies professionalism and understanding was impressive from the start. Stephens have been very proactive in dealing with any issues that have arisen during my time with them. Highly recommended."

Simon Brayshaw. POP Architectural Ltd.

"Stephens Accountants Limited are a helpful, friendly, approachable and professional company, they speak in terms that I understand, any questions or queries that I may have are promptly and efficiently answered, I would have no hesitation in recommending them to anyone."

Nigel Martin. N.M.P.S. Nigel Martin Packaging Services.

"We are very happy with the service received from Stephens Accountants. The promptness of response and helpfulness has been great in our first year of trading."

Julie Stead/Russ Smales. Russcott (Yorkshire) Ltd.

"Accountancy speak into understandable language. The team is a pleasure to work with."

"I am so impressed with Stephen's accountancy. They make it so simple. I simply plug in the sales and purchases invoices and cash receipts, send across a backup and Stephen's do the rest. All the bank reconciliation and management accounts. And generally on the same day. Since using their services I always feel up to date and have the confidence to take managerial decisions in the running of the business. They are knowledgeable, informative and very nice people."

Jacqui Brooks. The New Inn Public House (Walton) Ltd.