Tax Advice

That time between Christmas and New Year is when many choose resolutions for the year ahead. It is an ideal time to reassess your personal goals and how these relate to finances and business activities.

Chris Kelly from MENTA patron Jacobs Allen Chartered Accountants writes: 

At this time of year there is a lot of focus on completing self-assessment tax returns and settling tax liabilities by the 31 January deadline - but taking time to reflect on the bigger issues is also very important.

The immediate issue for many local businesses is the uncertainty caused by the Omicron variant and the lock down by ‘stealth’ we are experiencing and the associated loss of trade. Government support for these businesses has been limited so far.

One temporary solution for businesses could be obtaining a merchant cash advance. This is a newer alternative to a conventional bank loan, giving quick, easy access to capital for necessary expenses. Any businesses that operate in the retail, service and hospitality sectors are ideal candidates for merchant cash advance, although any business that has regular credit/debit sales through their PDQ machine would be eligible. The advance is repaid by a fixed percentage each time your customer pays with a credit/debit card.

The Government backed Recovery Loan scheme has also been extended to June 2022 and might also be worth considering, particularly as this doesn’t require a business owner to provide a personal guarantee.

Other future business planning questions you might want to consider are:

• Are you spending too long trying to manage your record keeping and should this time be better used in developing your business or having more leisure time?
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• Do you feel comfortable with interpreting the key numbers in your accounts?
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• Do you have a plan about how and when you will exit your business or how much it might be worth?
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• Have you considered buying a business but haven’t proceeded with the idea because the process seems risky or complicated?
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• Do you have plans to expand your business but aren’t sure what type of finance or grants to access to fund this, or where to find this information?

As a local accounting practice with specialist tax, accounting, and corporate finance expertise we can assist you with these questions and help you achieve your goals.

If you have any tax, accounting, or business queries you would like to speak to us at Jacobs Allen about please contact MENTA and enjoy a free 30 minute consultation or look out for our regular drop in sessions and networking events at MENTA on Hollands Road in Haverhill, @Inc. Bury St Edmunds and in Woodbridge. 

121@menta.org.uk