If there’s one message that taxes & accounting services in Northampton want to get across to small business owners this year, it’s ‘file your taxes early’! Let’s take a closer look at the benefits of doing so.
Why consider filing your taxes early?
1. To avoid fees
When you file your business taxes late, you’ll be hit with a penalty and then a daily interest charge which rapidly adds up. These penalties can become substantial and require extra time and effort to handle, not to mention the cost. And you’ll still need to file your taxes even with the stress of mounting penalties!
2. To avoid administration delays
Registering online for your business tax returns takes a few days, so don’t risk experiencing administrative problems such as difficulties logging on. HMRC is inundated with these types of queries in the week before tax filing deadlines. When you wait for your new password or details to be sent in the post, you could find you’re pushed over the submission deadline and get hit with a penalty. Even worse, you’ll have to deal with additional stress as you try desperately to get through to HMRC on phone lines that are constantly engaged.
3. To speed up any refunds
If you’re due any refunds on tax overpayments, you’ll get a refund as soon as HMRC has calculated your tax position. So the quicker you get your self-assessment in, the quicker you’ll get any refund due to you. An accountant can help you to assess whether you are due a refund for overpaid tax in any calendar year.
4. To free up time for financial planning
The earlier you know your financial position, the earlier you can plan your business finances and cash flow. Knowledge is power, so don’t leave everything until the last minute and end up in the dark about your finances and options.
5. To be in a better position for any loans
If your business needs to access a line of credit or take out a loan, you are far more likely to be accepted if you have already submitted your tax return and know your position. By knowing where you stand, you can better put your case forward to a lender and then evidence your financial position to improve your chances of being accepted. Even if you aren’t actively planning to take out a loan, it’s helpful to have the ability to access credit as a business, particularly to maintain your cash flow.
Why choose taxes & accounting services in Northampton?
When you’re running a small business, you’ll already have your hands full with myriad tasks relating to your enterprise. From marketing and recruitment to finance and sales, the to-do list is endless for entrepreneurs. But tax and accounting services are specialist areas and it makes sense to use a professional to ensure your books and tax affairs are correct and in order. Very often, professional accountants can actually save businesses money by helping them to maximise relevant allowances, for example.
Make this the year that you get organised with your tax, and consider engaging a professional to make the job as quick and easy as possible!
