Do You Pay Enough Tax?
This is not a stupid question ...
POSTED BY JONATHAN VOWLES ON 07/08/2018 @ 8:00AM
Ok, so you need to keep control of your costs, and tax is just another cost that you need to control and minimise. But, more importantly, are you making enough profit? Hence the question, because if you are making enough profit then you will be paying enough tax ...
If you make enough profit then you'll pay enough tax!
copyright: alphaspirit / 123rf stock photo (licensee)
But what is enough profit? The answer is unique to each business owner and for some, it will be a small number and for others a large number. Some people want a lifestyle business which is a business that enables them to have time for different things.
"That could simply be that they want to work from home!"
It could be to avoid the daily commute or to be able to walk the children to and from school every day. Others want a business lifestyle; they want status and respect, to have a big house and flash car, high powered meetings and expensive restaurants. Equally some people want to drop everything, sell up and move to a villa next to the beach.
One of the issues is that whatever the answer is for you now, it may change over time. You might really want to stop commuting and to work from home now, but will you be content with working on your own from the spare bedroom in 5 years time?
You might really fancy walking the children to school now, but most 16-year-olds won't thank you, so you only have a few years to do it. If this is you, then make sure you think about doing it now.
Whatever the answer is, most people would like more money, and that means paying more tax. What are you going to do, right now, to update your business and make it earn the money and give you the lifestyle that you want? Sooner rather than later.
"Would you like to know more?"
If you'd like some help with reviewing your goals to see if you make enough profit and pay enough tax, then do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.