Providing for what falls due.
WHY IT DESERVES SEPARATE PLANNING
Tax arrives after the profit that generated it, frequently when the money is gone.
WHAT TO ESTABLISH
Which taxes apply How each is calculated When each falls due How much to set aside
WHAT COMMONLY APPLIES
Company income tax, or personal tax on profits Value added tax, where registered Employee tax deducted Withholding tax, deducted and remitted
WHAT TO UNDERSTAND ABOUT COLLECTED TAX
Amounts you collect or deduct are not yours.
WHY THAT MATTERS
Spending them creates a liability you cannot avoid and personal exposure.
WHAT TO DO
Move them to a separate account as they are collected.
WHY SEPARATE
Money in the working account is spent.
WHAT TO SET ASIDE FOR PROFIT-BASED TAX
A proportion of profit, as it is earned.
HOW MUCH
Enough for the expected liability, with margin.
WHAT TO CALENDAR
Every filing and payment date.
WHY
Penalties for late payment accumulate.
WHAT TO PLAN AROUND
Periods where tax and other obligations fall together.
WHAT TO DO ABOUT ALLOWABLE COSTS
Record them properly, so profit is not overstated.
WHY
Overstated profit produces overstated tax.
WHAT TO KEEP
Evidence for every cost claimed.
WHAT TO ARRANGE
An accountant, to confirm treatment.
WHAT TO AVOID
Discovering a liability you did not provide for.
