Benjamin Franklin famously said, “There are 2 things certain in life: death and taxes”. This is as true today in 21st century Britain as it was in 18th century America and never more so regarding taxes than at the start of each year. Individuals’ self-assessment tax liabilities are due by 31st January and for those companies who have a March year end, corporation tax is also due by 1st February.
For most businesses December is a month where business is slower, billing can be less, payments from clients take longer to arrive and working days are reduced due to the Christmas and New Year bank holidays and people taking time off for a “festive break”. January arrives and, with potentially lower revenue coming in, HMRC tax liabilities become due!
Alternatively, you have had a successful year and your business is growing, times are good and you want to keep investing in your business to ensure growth continues. Making a tax payment can slow this investment down as it ties up cashflow.
Whatever your position, businesses can apply for funding to assist with their tax liabilities which means that they can spread the cost of the payment over a set period, normally 10 or 12 months. This greatly improves cash flow and can enable growth to continue and provides time for those client payments to arrive without the outlay of a large sum of money in one go.
For more information visit https://www.amigafinance.co.uk/products/product-details/#_selfassessment