A shocking 50 per cent of small firms have failed to put money aside to cover unexpected tax liabilities or pay for an accountant to close their books, despite the end of the financial year rapidly approaching.
According to a study commissioned by British Gas, more than a quarter of business owners are concerned that not being prepared for the financial year-end could lead to the insolvency or closure of their business.
Two in five fear they will be fined for not meeting their financial year-end obligations, while a fifth admit to having lost out financially previously through a lack of preparation.
More... Taxpayers left out in the cold as HMRC announces plans to close ALL of its 281 enquiry offices Running a small business? Don't forget your own finances - five top tips to make more of your money Find a financial adviser Get a free guide to saving tax by Hargreaves LansdownIn response, British Gas has joined forces with charity Business Debtline and support organisation Enterprise Nation to offer firms a free online toolkit, with advice on topics including closing a financial year, creating a business plan, as well as tips on reducing energy costs.
Nicola Connop of Business Debtline says: 'For a young firm, mastering the basics such as preparing for financial year-end can make the difference between a surviving and failing.' Go to britishgas.co.uk/makingiteasy.