Taking the headache out of tax
Small businesses face many challenges, and according to a survey by UK insurer RSA, the tax system is one of the greatest, with 44% citing it as a barrier to success.
Most businesses handle their tax liabilities using cash flow, whilst reports from HMRC released by the Telegraph, detail that in 2015-16, over 800,000 people paid their tax bills via credit card. It would appear to be a rising trend, up from 493,722 in 2014-15.
However, as of January 13th 2018, HMRC are no longer accepting tax bill payments made on personal credit cards, but there are other approaches which can be more efficient.
Covering Corporation Tax, VAT or Self Assessment Tax bills with a loan that can be paid back over a 3 to 12-month period is a way to spread the cost of the tax owed, leaving funds free to be funnelled back into the most profitable areas of your franchise business.
Tax loans aren’t just for businesses who struggle with the burden of recurring big bills. With tax loans, you can spread the cost of these regular outgoings and protect your cash flow.
Planning is key. Understand what your tax bill is as early as possible, so there are no surprises. You want to have as much breathing space as possible, so you can continue to run your business as usual.
A tax loan allows you to:
- Spread the cost of Self Assessment, Corporation Tax and VAT bills over 3-12 months
- Free up cash that can be invested in other key areas of your business
- Avoid any potential HMRC charges
- Take the pressure off and get on with your day job
Decisions can be made within a few hours, but this isn’t just an option for people who have yet to make their tax bill. Even if payment has already been made, it can still be financed. In the first few weeks of February, small business owners sometimes realise that their tax payment has made their cash flow position significantly less favourable, so a tax loan can allow them to move forward with their investment and plans.
Business Development Manager at LDF
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