Any business should have a clear idea of the likely annual results and tax liability before the end of the financial year. This allows you to make important decisions on matters such as investing in equipment or machinery, accelerating or delaying purchases, and sometimes delaying sales so they fall in the next year.
If it looks like you may have a great year with a sizeable tax bill, then perhaps it would be better to invest in new equipment before the end of the year and reduce the tax bill in the process. Even if you choose not to, then you know the projected tax liability and you can start to plan and manage your cashflow accordingly.
Conversely, a poorer set of results may prompt decisions to defer costs and do deals to get sales over the line quickly.
We also work with you to consider the wider impact of the anticipated results, not just on tax bills, but also on credit ratings, your Bank and funders, investors and even managing results as part of a long term plan to prepare the business ready for sale.
At the very least we will send you a summary with ideas on what to think about to reduce your tax bill. Whilst routine advice is delivered by the Mark Holt & Co team, specialist advice may be through our tax consultancy Your Tax Partners Ltd.