A needed but uncomfortable relationship exists between these 2 parties. On the one hand, most business owners would accept the need for such a body, as in some ways, it helps ensure that all companies abide by a common set of rules. According to their website, the main aim of HMRC is to be ‘….the UK’s tax, payments and customs authority, and we have a vital purpose: we collect the money that pays for the UK’s public services and help families and individuals with targeted financial support. We do this by being impartial and increasingly effective and efficient in our administration.’
What this involves can be sometimes very painful for busy business owners.
Business owners by definition, focus on the survival of their business. This involves getting new clients, keeping existing ones, making sure that they are on good terms with their suppliers. Often, fulfilling obligations to the HMRC, are not on the radar, except when that letter arrives! Then it is a mad scramble to get cash to pay before additional fines are incurred. Sadly, many a business owner, lose this battle and end up having to pay fines. In turn, harming their business’ cash flow.
Logic says, make provisions as you sell., the practicalities are ever so different.
Running a successful business is more complex than simple suggestions of putting money away for HMRC obligations. It can sometimes mean proper strategic planning to make sure that money is available in a timely manner. Many business owners started their business, because they had a product or service that fitted well with their target market and they knew how to sell. However, running a business successfully, is something that they may not familiar with. Along the way, expensive lessons are learned, sometimes taking too long to do so.
There are ways to help Business Owners to help them FastTrack an understanding of how to become more efficient in running their company. For further details click the button below.