January is the time of year when many Self Employed clients, despite being full of good intentions, find themselves at the mercy of HMRC as they struggle to pay their tax bill! A successful business year with good profits does unfortunately mean that tax will be incurred and having the discipline to allow for this does seem to be a challenge for some people.
So what are the solutions then?
- Keep your head down - never really a good idea!
- Come to an arrangement with HMRC. This can work, but the penalties can be quite substantial and this puts clients on the tax man's radar - never a good place to be!
- Borrow money to pay the tax bill. Depending on circumstances, this can be a very good idea.
Often if someone is struggling to pay their tax bill, there may be other stress points in their household finances too! Therefore arranging a Secured Loan to clear the tax bill and perhaps consolidate other bills and credit can often free up enough cash flow to take the pressure off and allow the client to then start providing for the next tax bill, which will be due in July!