Don’t hang about! Send us your books and records.

RACHAEL COBB, who heads up Page Kirk's accounts department, has a timely reminder for clients.

With the difficult situation we have been put in, in light of the Coronavirus, a large amount of business has had to close their doors and rely on the support of government and local authority grants that will be accessible in the near future. Due to lack of trade, we will find ourselves with time to reflect and additional time to get around to starting things we always put on the back burner. Such as the accounting records for the previous tax year.

With the January deadline only feeling like a few moments ago, I'm sure the last thing on your mind is getting your books and records in for the 2019/20 tax year. However, there are a number of benefits to sending them over to your accountant as soon as possible.

1. Your tax liability could be reduced
   If your accountant knows your 2019/20 tax liability before the 31^st July 2020 instalment is due, your payment on account may be reduced if your profits have gone down from the previous year.
   Your instalments are estimated on the basis of the previous tax years figures. The benefit for you is improved cash flow, as you avoid overpaying and receiving a refund at a later date.
   In light of the Coronavirus, HMRC have now deferred the second payment on account to 31 January 2021, this applies automatically, however, whilst this helps cashflow in July 2020, this will increase the demand for cash in January 2021.
2. You can increase knowledge and plan ahead
   The sooner you know your tax liability, the sooner you can make a plan for how you are going to pay it. This might be important if your business has performed well compared to the prior year, increasing your profits and therefore your liability. It will give you more time to put some money to one side, reducing the impact on cash flow when your liability is due on 31^st January 2021, along with the next years payments on accounts.
3. You can stay organised
   Sending your records in early will help you keep on top of your bookkeeping and filing. As a result, you'll be able to focus on your current year's targets, rather than having to organise documents for the previous year. If questions are raised, the answers will be fresh in your mind and documents will be easier to find. Staff at Page Kirk are working from home and are available in normal office hours, for any questions or queries you may have about finalising your records before sending them to us. We have arrangements to collect the records promptly and safely, retaining the 2meter social distancing regulations.
4. You will have peace of mind
   The sooner your accountant has your records, the sooner they will be able to complete your accounts. Avoiding the January deadline rush will eliminate the unnecessary stress that surrounds this time of year for business owners. It will also enable you to put money to one side and assess the finances required from all levels of the business to ensure you meet financial commitments during this current pandemic and enable you to have a plan.

If you would like any more information please contact us on 0115 955 5500 or email enquiries@pagekirk.co.uk.