We all know that businesses are all struggling with cashflow. However many owners are not aware of how the tax system can be used as a means of improving your business’ cashflow. Below is a list of simple yet very effective ways to do this provided by Imelda Prendergast the specialist provider of contractor accounting services:
We will cover this topic in detail in the OSK B2B Ezine later this month but I have picked a selection of tips from each area of tax for this blog:
- Look at the total VAT payable to see if your business is eligible to file returns and make payments on a less frequent basis or via direct debit.
- If your business is awaiting a statutory redundancy rebate and is experiencing particular difficulties in meeting its tax obligations as a result, there is a facility to offset the rebate against the tax due. You could ask for this to be offset against your next PAYE liability.
- Reclaim any withholding tax (RCT and PSWT) at the earliest possible dates.
- Any surplus trading losses can generally be carried back and offset against profits of the previous accounting period, which may result in a refund of corporation tax.
Imelda Prendergast is Partner – OSK Contractor Accounting and OSK Small Business Support
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