We are accredited under the Coronavirus Business Interruption Loan Scheme (CBILS). Check your eligibility & apply today. Find out more →

  • Tax tips
  • Top tips to help you meet the tax deadline

Views from the flipside

The deadline is looming. Businesses have until the end of this month to get their tax affairs in order. January can be a tricky time for companies. Even if you’ve kept on top of it all throughout the year, you can still have a time-consuming task on your hands.

Companies face a number of challenges at this time of year, particularly as the tax deadline is in tandem with reduced revenue after the Christmas break.

Andy Davies, our sales director at White Oak UK, says:

“It’s all too easy to forget that small businesses owners don’t often have the luxury of  enjoying much downtime over Christmas.

"The break is often a prime opportunity to catch up on important business admin and indeed, to start planning for the year ahead.”

No-fuss business loans from the flipside

It’s worrying that nearly half of small businesses in the UK admit that they have struggled to pay tax bills, according to a report from insurer RSA.

But what’s more worrying is that problems with accounting, or simply a lack of awareness about the process or the deadline, mean that as many as a quarter of companies are missing the deadline.

Failing to file a self assessment form by 31 January can leave you facing an automatic £100 penalty. 

The fines build up after three months so that HMRC starts charging penalties of £10 per day. And after six months, the penalty amounts to five per cent of the person’s tax or £300 – whichever is higher.

Being hit with fines will inevitably put a strain on the cash flow of small businesses, so managing your tax properly is key. We’ve put together some tips to help you manage your taxes.

Get a free finance quote for your tax bill

Our top tax tips for small businesses

  1. First, stay organised. You don’t want to be panicking the day before the deadline trying to find bits of paperwork, so it’s a good idea to file everything in an organised fashion throughout the year.

    If you haven’t made any progress, there’s still a week until the deadline. Just don’t leave it until the last minute.
  2. Keep tabs on all expenses and include all the information required. Make sure you don’t miss any sections out on the form, and include all earnings, including dividend income on any shares you own.

    You don’t want HMRC to reject your tax return if there are any mistakes, so also allocate time to double check the form before you submit it.
  3. Use tools available to you. The days of doing everything by hand are long gone. Software like Free Agent is now available to give you a helping hand when managing your accounts, so do a bit of research to figure out which app is best suited to your business. Making use of these tools will make your life a whole lot easier – think of it as an investment.
  4. Finally, if you’re really stumped when it comes to your tax return, you can get a professional accountant involved who should be able to take all the stress away.

    Yes, this will come at a cost, but you have to consider if that cost outweighs the penalty from HMRC. Seeking advice from an accountant on your finances can be invaluable to your business, particularly later down the line as your company grows.

Fulfilling tax obligations can be one of the biggest barriers to the success of a business, but don’t let it stop your company from having a prosperous future.

Cash flow is without doubt the principle concern for small businesses and tax remains one of the largest demands on this resource. Andy Davies adds:

"It’s not just timing that has a bearing on ability to meet the deadline, it’s also access to the funds required to pay it.

"As such, we continue to see a strong and growing demand from small businesses looking to create greater cashflow liquidity by simply spreading the cost of tax.”

What Next?

Call us today on 0330 053 6163 to find out how we can help your business spread the cost of your tax bill or download our free guide to tax.

Free guide to tax

Why choose White Oak UK?

  • No red tape, so you can receive funds in as little as 24 hours
  • We accept 4 out of every 5 applications
  • Apply quickly and easily with E-sign loan documents
  • You’ll always speak to the same person
  • Free up cash flow for other areas of your business
  • Tailored finance agreements to suit your specific needs

Views from the flipside

What our customers say

We could not have been happier. Banks as usual were a nightmare - they took over six weeks to eventually refuse for vague reasons unexplained. White Oak UK were professional, helpful, friendly, and best of all, fast.

credit-awards2018 Winner - Flintshire Business Awards leasing-life-award2018 leasingworld2018-1 SME Awards - Alternative Funder of the YearInnovator of the Year 2016Business Comparison Asset Finance Lender Award Growing Business Award - Amazon