As we approach the end of January, the tax deadline looms for businesses.
For many SMEs this means more pressure, not only on their time but their cash flow.
Even the most prepared businesses can find it a struggle to pull together their funds to make payment on their account for the tax year. But as HMRC is one of the biggest creditors, failure to pay tax on time can have serious consequences, including an automatic £100 penalty and then more penalties if payment is delayed further.
Putting measures in place to help manage your taxes is therefore essential, including reviewing and addressing any debt issues.
Preparing your business so that it is also a creditor which is paid by debtors on time, can significantly minimise the stress. Robust debt management systems and processes will ensure your company is paid as quickly as possible and that it’s not put to the bottom of the pile. This will result in improved cash flow and increase your chances of having the funds in place at the end of the year to pay your tax obligations.
If you need help or advice in improving your debt management processes in 2018, our expert team can help. Whether a one-off case or a substantial debt portfolio, we offer a one-stop-shop for businesses suffering from late payments, including pre-legal collections right through to post insolvency action.
For further information, please contact us.