Has your business been deferring VAT and other taxes over the last few months? This may have steadied the cash flow in the short term but the deadlines are creeping ever closer.
A business with March 2020 Year End will have the following cash ouflows due early next year.
- Corporation Tax 1st January 2021
- VAT 1st February 2021
- (Deferred from March 2020 quarter) VAT 31st March 2021
- VAT 30th April 2021
Therefore, each of the first four months of 2021 has a significant tax payment due.
Many businesses will have some real pain points upcoming. I'd urge all businesses to prepare a mid-range cash flow. NOW is the time to start planning ahead and take control of your business, rather than finding yourselves in a highly stressful situation, potentially at the last minute.
Book a discovery call with me today. I'd be happy to review your cash flow too and provide some tips on how reduce the stress from cash flow uncertainties.
Replies
Good advice - easy to put these deadlines to the back of our minds after the trauma that lockdown caused to businesses
Good post Neil. Businesses should be planning cash flow requirements for the next 12 months now while the government backed schemes are in place if additional borrowings are required to meet any shortfalls or to expand and grow.