Many have welcomed the introduction of Basis Period Reform, which will simplify self-assessment reporting for all unincorporated businesses ensuring returns are based on the tax year regardless of the business's year-end. These changes can for some increase self-assessment bills due to be paid by 31st January, whilst alignment to the new rules takes place, putting even more strain on cash flow, during a time when the UK economy appears to be heading into difficulties.
Business owners and Directors looking for greater financial freedom are increasingly spreading the cost of their tax bills. This convenient option helps credit brokers’ customers pay tax bills, including self-assessment, on time, improving cash flow and helping businesses perform better.
In tough economic times, businesses are having to consider how best to spend their cash reserves. According to independent research from the Premium Credit Tax Index, more than 430,000 SMEs are currently struggling to pay tax bills and numbers could continue to rise. Around one in three interviewed (31%) would consider spreading the cost of tax bills for a small fee regardless of whether they struggle to pay their bills.
As such, there is a clear need amongst UK businesses for a solution to help them financially plan for the future and meet tax bills more easily.
Karl Leitelmayer, Sales Director, Premium Credit (Tax) comments: “Making tax bills a manageable, monthly outgoing rather than a single, large annual lump sum payment can significantly help businesses perform better in the present, uncertain economic environment. Premium Credit provides this service.”
Karl adds: “Quarterly and annual tax liabilities can put a strain on a business’s cash flow so it makes sense to align these payments with other monthly expenditures and help free up capital for business growth. With self-assessment bills due to be paid on the 31st January, business owners and directors need to act fast to grab this opportunity to conserve cash flow.”
Premium Credit offers flexible self-assessment, VAT, and Corporation Tax solutions allowing brokers’ customers to spread the cost of their liabilities for up to a year. Paying monthly is a simple, straightforward, cost-effective process supporting customers and partners in creating opportunities through convenient payments.
To find out more, please contact the Premium Credit tax team on 0207 191 2079 or via tax@pcl.co.uk
https://www.premiumcredit.com/products/tax-and-vat
