Know how much to put away for your tax bill
Jan 16, 2020
So here we are it’s a new year and I’m now looking at my tax return and thinking I’ve got it all under control.
Obviously I have because I’m an accountant and it would be foolish if I have not already completed my tax return ready to pay in the next couple of weeks, however lots of people find this time of the year really stressful.
It’s obviously a time when you haven’t got very much money post-Christmas. Maybe you worked less in December, so earned less plus the money that comes in early January will just about tide you through until the end of January without a tax bill.
It’s a time where people worry a lot about money and it’s something that is really important to manage in your business. If you don’t manage your money carefully then you can be hit by an unexpected tax bill in January at any time when you least need it.
Don’t ever be afraid of your tax bill again and be sure that you know well in advance what your tax bill is going to be so you can plan and say for it and keep aside money every month in order to ensure that you have money at the end of the year.
If you are self-employed you should keep back 30% of your net income (turnover less costs) and if you are a limited company you should keep back 19% in corporation tax and 15% of your personal income to pay income and dividend tax.
I know how overwhelming it can be when you don’t have control over your accounts and your business numbers so I’m running a 5 day challenge starting on the 27th of January to get you to fall in love with your business numbers and understand what needs doing.
You will need to do around 10 minutes a day after watching the video and I promise it will not be overwhelming. There will be small tasks designed to get you thinking about your numbers and getting into good habits for the coming year.
There will be a video posted in the group and emailed to you each day and I will go live later each day to answer questions. Sign up for the challenge here.