How to relieve financial stress of tax deadlines
- Credit: Steve Adams
Director of Norwich Accountancy Services Jonathan Hook offers his expert advice for alleviating money worries about upcoming tax deadlines that have been exacerbated by the pandemic.
Small business owners and the self-employed often have to adopt a jack-of-all-trades approach, managing taxes and finances on top of attending to the everyday concerns of their business. But with Covid-19 introducing a variety of novel challenges and government interventions, it can all get a little overwhelming. Here are some tips to relieve financial stress brought about by coronavirus and tax returns.
Be proactive, not reactive
It is best to get on the front foot with your tax returns, especially as the Self-Assessment tax return deadline on 31 January 2021 looms. And bear in mind that any small employer taking tax and National Insurance from their employee’s pays is required to submit and pay by the deadline. Covid or no Covid, there’s no moratorium on these deadlines.
Some businesses have been caught high and dry by thinking they could rely on the current year’s net income to pay last year’s taxes – but with coronavirus negatively impacting profits, it might be necessary to organise a payment arrangement with the tax office. By being proactive now, we can work with you to negotiate repayment terms with HMRC so that you can breathe easier.
It is important to keep informed of tax regulations – for example if you have recently sold a residential property, it is now a requirement to declare and pay Capital Gains Tax within 30 days of completion (this only applies where the property in question is not the seller’s main home).
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Another instance concerns sole traders who are signed up to Payments On Account for the first time – you will have to pay one and a half times the amount of your first tax bill due January 31 if it is over £1,000. We can help keep you informed about the most up-to-date regulations and manage Capital Gains Tax or Payments On Account issues to minimise stress and correct mistakes you may have made on your tax return.
Ask for help
Don’t be afraid to ask for help and advice. Our lives have changed and the way we do business has changed – and that certainly has had an impact financially.
Norwich Accountancy Services can give guidance on a wide range of tax solutions – such as how to apply for the government’s coronavirus Bounce Back Loan Scheme (BBLS), for example. If you are not particularly IT savvy, we can get you set up with internet banking and guide you through the process.
During the first lockdown, we submitted furlough claims pro bono for our clients so that we could give back to the community when they needed help. We also offer a free 30-minute consultation for people that are having difficulties and can direct clients to useful resources depending on their needs.
Get in touch today to book a consultation. Call 01603 630882, email email@example.com or visit www.norwichaccountancyservices.co.uk