The Benefits of an Early Tax Calculation

It’s that time of year again… Summer holidays, you say? No…I’m afraid not.

It’s time where your tax records really should be in your accountant’s post-box and featuring on their to-do list.

Those of you who are heading off to sunny shores in August and have already sent records to your accountant, then relax and enjoy, knowing that your tax bill has either been calculated or is in the process  of being calculated. However, those of you who are still sitting amongst a pile of invoices, cheque books and bank statements, should really pencil in some time in the next week or two to get organised and pass the buck along, so the process doesn’t grind to a halt.

5 Good Reasons to get Organised Early:

• Plan CASHFLOW for tax payments – imagine getting your tax bill on 15^th December. Christmas bills piling up and it is perhaps more than you had budgeted for. Not ideal. By getting an early calculation of your tax you have time to plan a contingency, save a few more pennies into the tax fund and feel in control knowing that other personal treats that you had money earmarked for, don’t have to be sacrificed.
• Ensure a FAST TURNAROUND and guaranteed timeframe – whilst your accountant will aim to turn your accounts and tax return around as quickly as practically possible, when the “busy season” commences, the queue naturally gets longer. By sending your accounts into your accountant prior to August holidays, they can plan the work effectively around your deadlines and with increased speed.
• Allow enough time before the deadline to maximise TAX OPPORTUNITIES – often tax planning opportunities need immediate action, or certainly action within a certain timeframe. Tax returns that are prepared too close to the HMRC deadline often miss out on both small and large tax savings that can be suggested by your accountants, if they have access to the right information at the right time.
• Finalise your position for last year so you can FOCUS on the current year – remember that although you are focused on 2013 still, your business is mid-way through a year- end in 2014. To be productive in business and make accurate decisions it is vital to have “real time” data in an easy to view format. By clearing down last year’s tax position you will have renewed energy to focus on what is happening right now.
• WORK TOGETHER with your accountant to ensure you receive the highest level of communication – this goes without saying that by working together greater results can be achieved for you and your business. By planning your tax work properly, the absolute best advice becomes available.

Act now. Don’t delay. If you need help, I am sure your accountant will be willing to spend a few minutes explaining what is required from you. Get the ball out of your court for a month or two so you can really enjoy the rest of the summer!