Five tips for starting the New Year without a cash hangover
1st December 2016
With the end of the year fast approaching it’s a logical time to reflect on business performance this year and think about what you want for 2017 too.
But while thinking and planning are great things to do, you should also take a few practical steps to make sure you don’t start the New Year with a hangover bigger than an over-enthusiastic 18 year old after their first New Year’s Eve party.
Here are our reminders and recommendations to help keep you in the black.
1 Corporation Tax – this bill is always due nine months and one day after your financial year end. Most of our clients have a 31 March year end, which means corporation tax is due for payment by 1 January. If you settle the bill early HMRC will pay you interest – not much, but probably more than your bank does right now. If you haven’t got any money set aside you must give this serious consideration now
2 Don’t forget your self assessment tax return – every director and self-employed person must complete one by 31 January. Don’t forget, if you owe any personal tax it will be due by 31 January. If you’ve not returned all of your self-assessment information to us yet, do it ASAP to avoid being on Santa’s naughty list (and ours too!) Do call Claire with any queries or concerns
3 Review your direct debits – it’s always good to take stock, review what you’re paying for and whether you need to pay for it, both business and personal. Are you still getting value from last year’s gym membership or is your workout gear buried at the bottom of a drawer somewhere? Do you really need every TV package? Are you taking advantage of that Kindle Unlimited or Amazon Prime subscription or is it just costing you money?
4 Beware the automatic renewal – you will have some things on an automatic renewal, most likely insurance. It’s worth checking when they will renew and making a note in your diary to compare prices. Insurers often rely on people not checking the market to find a cheaper deal
5 Manage personal debt – if you expect you’ll have a big credit card bill after the expenses of Christmas and the New Year, check out the 0% balance transfer offers on credit cards and apply now. Consider deferring your Christmas do until January or February for better availability and to smooth the flow of cash out of your bank account
Once you’ve thought about your business goals for next year, do share them with us so we can include them as part of our regular accounting discussions with you. If you think there’s anything we can help with, give us a call on 01937 547 109.