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News Business News Small firms fail to ‘plan’ for tax bills
News Business News Small firms fail to ‘plan’ for tax bills | Small firms fail to ‘plan’ for tax bills |
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A substantial number of small companies do not put funds aside in readiness for meeting tax bills, a new study has found. The research was carried out by Alliance and Leicester Commercial Bank. Of the small companies that responded, just 40 per cent saved money to meet their corporation tax liabilities. Some 35 per cent only set about finding the money when the payment date was close, often using profits or personal funds. One in five small companies reported that cashflow issues prevented them from saving on a planned basis, with many blaming late paying customers. Steve Jennings, director of business banking for Alliance and Leicester, said: “Although businesses expect a corporation tax bill, it can create sudden cash demands on a company, particularly small businesses who might already struggle with their cashflow. This research highlights just how ill-prepared some businesses are and it is worrying to think that they are jeopardising their future business prosperity by dipping into company profits or using their own money.” Mr Jennings added: “Good advice to any small business owners is to make their cash work harder for them by putting funds aside throughout the year or deposit year end profits in an account that offers quick access and risk-free high levels of return.” |
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