Repayments
Now this first point needs no introduction really but if you are due a repayment of tax then get your tax return completed and submitted as early as possible. Seriously, the sooner you submit that tax return the sooner you will receive that repayment.
Top tip – re-invest the repayment back into the business for further tax relief, or you may have your eye on a little treat. Whatever you decide to do with the extra cash that you may receive make sure you spend it wisely!
Cashflow
The obvious point above is about receiving money as soon as possible but when I say cashflow I don’t mean just for that juicy bit of cash that you may be receiving but instead this is for the tax payment that will be due if your business is making a big fat profit! Hopefully a lot of you can relate because this is ultimately the main goal of running a business, to make a profit.
The sooner you prepare and submit your tax return the longer you have to plan for the tax liability that will become due on the 31st January after the tax year that you are preparing a return for.
and lastly ff your tax liability has reduced at all the sooner you prepare the return the sooner you can think about reducing the July payment on account that will also help your cashflow.
Tax Planning
Tax rules change all the time, honestly the amount of CPD that us accountants need to do is relentless due to changes that are made year on year. Preparing your tax return early gives you and your accountant more time to look for and to consider any potential tax reliefs that you can benefit from.
Business Strategy
Preparing your tax return early means that you will be able to review past performance of the business and get working on a new strategy as soon as possible. If you wait until December to prepare your tax return and review its performance then you have lost almost 8 months that you could have been implementing new goals and strategies to improve the performance of the business.
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Check out my interview with the amazing Carl Reader on his The Carl Reader Show’ – Ria-Jaine Raw & Uncut.
Check out my interview with the amazing Katie Godfrey, owner of KG salon, KG franchise and Lash training academy on ‘The Life Of KG’ – Guest Ria-Jaine
Friendly disclaimer: The information contained in this article is for guidance and information purposes only. It should not be relied upon as full and complete accounting, tax or legal advice. For specific advice relevant to your own situation please speak to Ria-Jaine MAAT or another professional direct.