Don’t ‘kick the can down the road’ on tax bills
Business finance specialist Bathgate is warning Liverpool city region firms to get on top of their VAT and tax payments as ‘a matter of urgency’
Merseyside business finance specialist Bathgate is warning local small and medium-sized firms to address their VAT and tax payments as “a matter of urgency”.
Many businesses have struggled with the COVID-19 pandemic and have used Government grant and loans schemes to keep themselves going. However, West Kirby-based Bathgate has waned against “kicking the can down the road” on tax bills.
The firm’s business finance VAT finance specialist, Paul Trickett, said: “Come March 2021, when we expect to emerge from lockdown once more, BBLS and CBILS loans will have been exhausted.
“VAT payments due between April to June 20 will have been deferred and businesses will have potentially negotiated time to pay with HMRC on June and September 20 quarter returns.
“While it has been vital and prudent for businesses to access and use these schemes, the continuing nature of the COVID-19 pandemic has made it easy to lose focus on finances and keep pushing away the inevitable. Now is the time to assess the position of your business and plan accordingly.”
The firm is advising that businesses prioritise the new HMRC payment scheme, while also exploring other finance options through independent business finance providers, such as VAT and tax funding.
Mr Trickett added: “When it comes to negotiating the new payment scheme at the end of March, VAT returns will need to be up-to-date and – for accessing other funding to keep businesses alive – preparation will be key.”