How To Pay The Revenue When You Haven’t Got The Cash
Cash is the lifeblood of any business and if it’s not flowing there’s trouble. VAT, corporation tax and Self-assessment are lumpy liabilities that can cause stress to anyone. Here’s a list of practical tax administration ideas that can be used to ease cashflow problems:
- Change your “VAT stagger” anyone with a VAT periods: Jan-Mar, April-June, July-Sept and Oct-Dec finds themselves facing VAT and Self-liabilities in January and July.
- Phone the Revenue Business Payment Support Service (0300 200 3835). If you can’t pay all your tax on time, phone this service before the liability becomes due. Many clients have found them genuinely helpful in allowing delayed payment of liabilities. Interest is charged on late payments, but provided contact is made before the liability is due, a “time to pay” arrangement with the VAT man will not lead to a default surcharge. Similarly, Income Tax surcharges will not be applied provided a “time to pay” agreement is entered into before the relevant surcharge date AND the terms of the agreement are adhered to. Revenue staff have been instructed to be flexible in their approach, please make sure you do not set yourself an unrealistic payment plan, they will probably agree a much easier one.
- Call us, there is always something that we can do to assist.