Have you got enough put aside for tax?

First published on 14 May 2020 by Alastair
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The Association of Certified Chartered Accountants (ACCA) has just reported that, based on an “expert panel of accountants representing over 16,000 SME clients in the UK” over half (55%) of these companies have decided to defer their tax payments.  Moreover, and somewhat worryingly, only just one third (36%) say “they are likely to be able to meet these tax liabilities in six months’ time.”  In other words, nearly two-thirds may not be able to do so.  You can  read the full article here.

Our advice to our clients has always been to put aside the money required to pay your tax bills as you go.  That way, even in the midst of a crisis as grave as this, you’ll be able to pay your tax bill when it is due.  It may be painful, especially for those (many) businesses which are struggling just now, but beware the old maxim about death and taxes and realise that HMRC is not going to let you simply avoid paying your taxes, even if they are generously deferring the need to do so at present.  If you can, pay your tax when it’s due.  HMRC will be prepared to help in cases of genuine distress, but that does not extend to cancelling your tax, so if you are unsure about anything get in touch with us and we’ll advise you what to do. 

Julie Downie, Accounts Manager

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