January 31st is nearly upon us and we all know what that means. No, this isn’t yet another article about how Brexit is going to affect your business. I’m talking about the deadline for submitting your tax assessment to HMRC. 11 million of us will be submitting our assessments by midnight on Friday and for thousands of small business owners, it’s a worrying time. It’s when suppliers’ invoices are put to the bottom of the list of priorities, finances are juggled, and somehow, if you’re lucky, you’ll get your payment into HMRC before penalties are incurred. And of course, delaying payments to suppliers can be a double-edged sword because your own debtors could similarly delay paying you.
HMRC stopped taking payments by credit card a couple of years ago which has put an even greater strain on small business owners’ cash flow. So what can you do if you’re unable to pay your tax
bill? You can contact HMRC and ask them to spread the payments over the following
year. However, they will require a good reason to explain why you can’t make the payment such as you’ve been in hospital with a serious illness. Hard luck stories such as you’ve had a customer go out of business without paying their invoice are unlikely to engender sympathy from the taxman.
For those unable to find the money or who will suffer dangerously poor cash flow as a result of paying their tax bill, it is possible to arrange short-term funding in order to overcome this difficult period.
We differ from banks as their ‘one size fits all’ approach means they can’t lend to many small businesses, whereas we have lending products geared toward any type of business
We accepted a recent application for finance when the bank had said ‘No’ with the loan paid out within 2 hours of applying.
For a confidential chat about business finance, please get in touch:
Telephone 0800 002 9608