Fish and chip shop owners concerned about their cash flow over the coming months are being reminded they have the option to finance their HMRC Self-Assessment tax bill.
With many businesses required to make a tax payment later this month, finance specialist Johnson Reed says one way in which they may be able to soften the blow is through utilising a business loan. By using this option, it allows owners to either use the loan to pay the tax itself or to cover the hole left by it. Monthly repayments towards the loan can be made over a 6, 10 or 12-month term, preserving cash flow and maintaining working capital for other areas of a business.
Mark Johnson, managing director of Johnson Reed, comments: “Tax is an outgoing from your business that will have to legally be paid, so there is no getting out of it! Therefore, by the end of July, there is potential for your business to be put in a relatively volatile position for a few months, especially in the current trading climate as business outgoings will have an impact on cash flow.”
The application process does not require any supporting projections, no assets are charged as security, and existing funding lines are not impacted. A fixed transaction fee is added to the finance agreement and spread throughout the repayment term.
Mark adds: “As previously mentioned, the current trading climate is making it difficult for businesses of all sizes at the moment, so the timing of this tax payment isn’t ideal for most. With the financial support options being made available to your business, it is up to you to make the most of them.”
A self-assessment form is filled out annually by anyone who is either self-employed as a sole trader or a partner in a business partnership and is used by HMRC to calculate how much tax is owed from income declared.