Spreading The Cost Of Tax
Given the current climate, the focus of our advice from our EQ Taxperts switches from tax planning to managing the cost and cash flow effect of tax. In the past few days, we’ve had numerous conversations with clients about how to deal with tax matters, and we thought it would be useful to share a few thoughts. If you are looking at ways to spread the cost of tax, you might consider some of the following:
- Try to buy some time with HMRC by contacting them to negotiate Time to Pay arrangements. Our experience is that HMRC will acknowledge all reasonable requests. You can call HMRC on their dedicated Coronavirus Helpline – 0800 024 1222.
- Are there tax payments that could be deferred or reduced by simple tax planning such as change of year end (for companies and unincorporated businesses) or applications to reduce payments on account due to expected lower profits?
- There are many short term loan providers who may assist in the financing of tax payments.
- New information is available all the time and as the implementation of the Government’s emergency arrangements becomes clearer, tax will be a part of the costs eligible for deferment or spreading. You can find information on the latest Government announcements here.
- Sometimes tax repayments follow on from previously overpaid tax – could you possibly net the two off?
- For eligible businesses, R&D tax credits are a valuable source of potential cash injection for companies. If you think you could be eligible, then get in touch with our R&D Taxperts to discuss.
We expect there will be other measures introduced over the coming days and weeks which will help you and your business, and we’ll endeavor to keep you up to date with all such measures. In the meantime, your local EQ Taxpert will be happy to help.