The building blocks of accountancy

Julia Burn continues with our A-Z of top tips. This month she turns to ‘K’.

‘K’ is for Keys

– the keys to unlocking your medical business’s tax issues in preparation for emerging from lockdown

During this unusual and uncertain time, some doctors’ private practices have managed to stay functioning in a limited way, but some have been closed.

We know that some independent practitioners have been working with the NHS to play their part while still carrying out private work where possible. Everyone is thinking about what will happen when we come out of lockdown.

Planning for the future

No one knows what the coming weeks and months will bring. However, you should be creating scenarios and planning for the short-term future of your business on a weekly basis.

You can do this by preparing simple, high-level, profit and loss and cash flow forecasts assuming best-, average- and worst-case scenarios. 

It will be vital to review the outturn against these forecasts and to update them as circumstances change and the economic environment evolves. 

This will allow you to provide banks, customers and suppliers with the information they need to make the decisions to support you.

Many are worried about making tax payments that will be due.

Although HM Revenue and Customs’ (HMRC’s) approach to Covid-19 continues to evolve as the crisis develops, it is highly likely that its inspectors will be more sympathetic to taxpayers given the current circumstances.