If you are planning to start new franchises UK, there would be a hundred and many things on your mind already. From legal issues to financial and franchise location planning, there would be a lot on your plate already that you would be trying to digest as quickly as you can. The initial period of your franchise UK might be extremely hectic for you, and you might be feeling that there is no way out of this pressure situation. However, it will surely get easier for you as your business will start to establish. Apart from all of your other franchise worries, paying taxes might also be haunting you.
New franchise business owners usually try to run always from taxes to the point that it becomes a massive problem for them. So, if you are a new franchise business owner – take notes of the following tax tips that will help you keep your taxes always organised while you focus on your growing business.
1. Consult A Professional:
Yes! Everyone knows that consulting a professional will help you keep your taxation problems on the track; however, people still do on care to consult the right professionals on right time, and the opt consultation when the matters get out of their hands. So, as a new franchise business owner, make sure that you consult a franchise accountant or a registered taxation advisor in the initial stages of your business. Believe it or not, with professional advice there is a high chance that you will save more pounds on taxes in the long run as compared to the consultation fees.
2. Plan Your Tax Payment Due Period:
Not many people pay too much attention to this fact, but you can save some pounds and most importantly, you can keep your tax payments on-track if you plan lump sum annual payment. Paying taxes annually rather than monthly and semi-annually also gives you more time leverage for saving money for taxes.
3. Open A Separate Bank Account For Collecting The Tax Money:
May they be food franchises UK or any other type of franchises UK, all franchising businesses require dedication and hard work. Initially, it is a very tough job to keep a record of all the payments and earnings. In this hassle, having the same account for your business transactions and for saving your taxes can become very challenging. So to save yourself the trouble, it is a good idea to open a separate bank account especially for collecting the tax money.
4. Stay Updated With Tax News:
It is understandable that it would not be possible for you to take special time out to read all the business-related news. However, if you want to be tax smart, you would have to keep an eye on tax-related news. With a tight business budget with more expenditures and less earning, you would not want to receive any unwanted surprises. So, make sure that you are aware of the latest tax news and are informed about how it might or might not affect your franchise business.
5. Adopt New Technology:
It does not matter if you own low cost franchises like home based franchises, van based franchises, or popular coffee franchises, food franchises UK – you can’t live in old times! You would have to adopt new technology. It is essential for you to save all money transactions on professional software; this will help you get a clearer idea about your tax position.
6. Remember The Due Dates:
Remembering your due date will help you save more efficiently. It is also vital that you do not wait for the last day of the due period to pay your tax. This is one of the biggest risks that you can take, especially if you care about saving those extra late penalty pounds that you might end up paying because you weren’t able to pay the tax on-time for any reason.
7. Beware Of Scams:
New franchise business owners are an easy target for scammers. It is highly advised to check with your tax consultant before you pay any extra taxes that you might not be aware of or aren’t included in your tax plan. Avoid making uninformed decisions to protect your hard earned money from scammers.
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