Paying tax is the sign of a successful business!

As accountants, we’re used to hearing people grumble about paying tax. But we see things differently. For us, a tax bill is a sign that the business is successful – after all, you need to be making money in order to be taxed on it.

So we’re on a mission to change the way that people think about tax – to get people into what we call an ‘abundance mindset’. That means not worrying as much about thresholds, and considering it a success every time your turnover increases.

Tax as a measure of success

The goal of most businesses is to grow. So that means more turnover and, if you’re planning and working efficiently, more profit. So it makes sense that the more financially successful your business is, the more tax you’ll pay. And that’s a good thing.

The reality is that the most successful businesses – and the most successful people – pay the most tax. It should be a badge of honour!

“If you approach the ocean with a cup, you can only take away a cupful; if you approach it with a bucket, you can take away a bucketful.” – Ramana Maharshi

Why think differently about tax?

People often see the numbers involved in a tax bill rather than what it represents. If your individual earnings have tipped you over into a higher-rate tax bracket, that should be grounds for celebration – you’re making more money than most of the population. The same goes for your company: as long as your tax and financial planning are sound, your tax bill will be representative of the money you’re bringing in.

And don’t forget that tax rules allow you to run your business in a more financially efficient way. Without them, you can’t pay dividends or drawings to your shareholders. You can’t plan your business strategically and you can’t manage your own financial planning as smoothly.

And of course, if you deliberately hold back your business’s progress in order to avoid something like the VAT threshold, you’re effectively devaluing your business – it will be worth less and it will generate less profit.

So let’s turn the tax debate on its head and look for ways we can grow businesses, generate more income and pay more tax! And let’s do it on our terms – for example, personal financial planning helps you to identify what you want to get out of the business now and in the long term. Then you design your business around those needs. So you’re taking control and making the plans that suit you best.

Find out more about changing to a Tax abundance mindset by contacting us today!

Please note: This is not meant to constitute professional advice. It is generic guidance only and things may have changed since it was written –please always seek specific & tailored advice for your circumstances.