I am preparing for a tax bill
A deadline is approaching and you are not sure the money is there.
Founder & writer — writes from experience
Tax bills are calculable in advance. The stress comes from finding out the number after the money has been spent.
Work out the estimated liability, check the reserve, and close the gap with a plan rather than a panic.
What to fix first
- 1
Estimate the liability now
Even a conservative estimate beats no estimate.
- 2
Check what is genuinely reserved
Money in the current account is not reserved.
- 3
Contact HMRC early if there is a shortfall
Time to Pay arrangements exist and early contact helps.
Your seven-day plan
Day 1
Identify the tax question
Write down whether the immediate concern is Self Assessment, VAT, Corporation Tax, PAYE or another obligation.
Day 2
Collect current notices
Gather official correspondence, online-account information and the dates shown on each notice.
Day 3
Reconcile the records
Check that sales, expenses, bank transactions and prior payments have been recorded consistently.
Day 4
Separate the reserve
Identify cash genuinely set aside and keep it separate from working cash.
Day 5
Estimate carefully
Use a planning tool only as a prompt for questions; do not treat it as a tax calculation or filing result.
Day 6
Build the payment calendar
Record filing and payment dates that apply to your entity and accounting period.
Day 7
Act on any gap
If a shortfall exists, contact HMRC early and obtain qualified advice rather than waiting for the deadline.
Numbers and documents to collect
- HMRC or Companies House correspondence
- It identifies the actual obligation and date rather than an assumed universal calendar.
- Bank and accounting records
- They support reconciliation and an accurate professional discussion.
- Reserve record
- It distinguishes earmarked tax cash from the operating balance.
A reserve gap found before a deadline
A founder compares the expected payment with the cash actually held in the tax reserve. The gap is identified weeks before the deadline, giving time to check the figures, protect current cash flow and speak to HMRC if payment difficulty is likely.
The planning exercise does not change the liability; it changes how early the problem is visible.
Common mistakes and red flags
- You are relying on a calculator result instead of your records or professional advice.
- Tax-reserve money has been used for routine operating costs.
- You plan to take new credit solely to meet a tax deadline.
Get professional help now if…
Read these, in this order
When this path is not the right one
- We do not show credit products on this journey. If you cannot pay a tax bill, speak to HMRC and to a qualified adviser first.