Member Article

Don’t let VAT cast shadow over New Year

A DEMAND for payment of VAT isn’t the perfect way to go into a new year but for many businesses it’s just an unavoidable part of the commercial routine.

Yet for some, the combination of the VAT man’s demands on top of an expensive Christmas can prove just too much to handle.

According to Paul Moorhead, of leading Sheffield insolvency and recovery practice Graywoods, many businesses will go into the New Year fearing for the future - but doing little or nothing about it.

“Business owners who have their VAT quarter ending in November and December know that there will be a bill to pay in January or February and they need to be prepared for that,” he said.

“They should be planning their cash flow very carefully to make sure they can deal with their tax liabilities, not putting the thought out of their mind and hoping it will disappear.

“But with many companies having a Christmas shut down and providing holiday pay, plus the fact that many of their customers will take Christmas as their own opportunity to pay late for goods and services, it is easy to see that a cumulation of factors can simply add to the problem when that VAT bill also arrives.”

Paul said, though, that there were steps that could be taken to ensure a business survives into a new period of trading.

“There is a full range of options that we can utilise to help people to decide how best to deal with their business and financial problems,” he explained.

“At Graywoods we pride ourselves on helping businesses to survive and to turn around.

“Sharing the problem and exploring all the avenues for survival are the best options for anybody dreading the start of another year.

“Remember that a positive response today can certainly help to prevent a crisis tomorrow.”

To find out more about the full range of services provided by Graywoods call 0114 285 9500.

This was posted in Bdaily's Members' News section by John Highfield .