New year, new start – right? For many businesses, 2014 is the chance for a clean slate and ride a wave of optimism sweeping across the UK economy that is continuing to grow.
With the worst now hopefully behind us as far as business is concerned, from January onwards many companies are looking to expand.
According to Bloomberg and the Chartered Institute of Personnel and Development’s Marketing Confidence Monitor, around half of firms are now completely focused on growing their operations once the new year kicks in.
With this in mind, it’s important you don’t get left behind. Don’t be fooled – despite that positive outlook for the future, the same old traps can still catch you out and delay progress.
Deadlines and compliance
The first thing to avoid being tripped up by is good, old-fashioned tax. As January arrives, so does the end of the tax year. This pretty much guarantees that the first month of 2014 is likely to be a busy one.
Nevertheless, there is plenty you can do to make it easy for yourself. Familiarising yourself with any changes to legislation that are likely to affect you well in advance is a good idea, as this could well impact on your business with regards to what you are liable for and what you need to do to remain compliant.
The importance of making sure that you don’t miss the deadlines shouldn’t be underestimated, either – with the penalties potentially packing a punch depending on how late you leave it. If you fail to pay within six months of the January 31st deadline, that’s when it starts to get really serious – as you’ll likely have to pay an extra five per cent on top of your original tax bill, as well as several extra charges on top.
This can instantly eat into capital that should be being invested back into your practice, so you can understand how this has the potential to really harm your business in the long-term.
Footing the bill
Seeing as though not paying isn’t an option, one way you can look to get ahead is by making sure that paying your tax bill doesn’t impact on the growth of your practice.
With such a large payment required so early in the year, one solution is to take advantage of an unsecured loan to cover your liabilities – this way, your capital is freed up to expand your company.
While all the details can be found here, the advantages of such a finance agreement are based around the fact that this sort of tax funding can be agreed in principle over a period of time as short as 48 hours and there is no need to secure it against your personal or company assets.
Utilising this type of strategy when it comes to taking on your tax can really pay dividends. By paying what would normally be a large sum in one go over a three-month period instead, this will allow you to focus your funds on paying for that new equipment you need, hiring those extra staff who will make a difference, or opening that new practice.