Be Tax Ready - Know your Numbers before 31st October

Be Tax Return Ready:   Know your Numbers before 31st October

A practical two-part programme open to small / micro businesses - with less than 10 employees and a registered business address in Cork City

LEO Cork City is offering a practical, jargon-free training programme for owners/managers of small and micro enterprises registered in Cork City who want to better understand their Income Tax obligations and avoid last-minute surprises when their tax return is due. 

Many sole traders rely heavily on their accountant and often leave tax matters until close to the filing deadline. This can lead to unexpected tax bills, cash flow pressure and uncertainty around how much needs to be paid.

This programme is designed to help participants understand the basics of their accounts, their taxable income, their Income Tax liability and their preliminary tax obligations. The focus will be on practical understanding, simple financial skills and better planning.

What this programme covers

• How taxable profit is calculated
• What expenses may be allowable for tax purposes
• Why the 31 October tax deadline matters
• How preliminary tax works
• How to prepare for your tax bill in advance
• How to use cash flow planning to avoid surprises

No advanced accounting or tax knowledge is required.

Why this programme matters

For sole traders, Income Tax is generally based on the profits earned in the previous accounting year. This means that the accounts for the previous year form the basis for calculating the tax liability due for payment.

In addition, sole traders are normally required to pay preliminary tax for the current year. This can create a cash flow challenge if the business owner has not planned ahead.

This programme will help participants understand these obligations in plain language and prepare for them in a more organised way.

What will be covered?

Participants will learn and understand ….

• the basics of a Profit and Loss Account
• understanding sales, income and business costs
• allowable business expenses
• the principle of expenses being wholly, exclusively and necessarily incurred for the business
• calculating taxable income
• understanding Income Tax for self-employed individuals
• preliminary tax and why it must be planned for
• how tax payments affect cash flow
• preparing information for your accountant
• avoiding last-minute tax surprises
• annual cash flow planning
• 13-week rolling cash flow forecasting
• other common taxes and obligations that may arise

The programme will also touch on other relevant tax areas where appropriate, including:

• Local Property Tax
• Investment income from property or other assets
• Capital Gains Tax on the sale of investments or property
• Tax on gifts or inheritances
• Mileage and subsistence
• Pension contributions
• Benefit in Kind issues where relevant

Programme format

Tuesday, 22nd September, 09:30-13:00 - Understanding Your Numbers

The first session will focus on helping participants understand the fundamentals of their business accounts.

Topics will include:

• How to prepare, understand and read a simple Profit and Loss Account
• How business profit is calculated
• The difference between income, expenses, profit and cash
• What expenses may be allowable for tax purposes
• How taxable income is arrived at
• Why profit does not always equal cash
• How to use an annual cash flow template
• How to use a 13-week rolling cash flow forecast

The aim of this session is to give participants a clearer understanding of the financial information that drives their tax liability.

Tuesday, 29th September, 09:30-13:00 - Preparing for the Tax Return

The second session will be more practical and focused on preparation.

Participants will be encouraged to bring their own draft figures or working information so that they can begin to shape their accounts and understand their likely tax position.

Topics will include:

• Reviewing income and expenses
• Preparing draft figures for discussion with an accountant
• Estimating taxable profit
• Understanding the likely Income Tax liability
• Understanding preliminary tax
• Identifying cash flow requirements
• Planning ahead for payment dates
• Questions to ask your accountant before the deadline

The aim is that participants leave with a clearer view of their likely tax position and the cash flow planning required to meet their obligations.

Key benefits for participants

By the end of the programme, participants should be better able to:

• Understand how their Income Tax liability is calculated
• Prepare more useful information for their accountant
• Understand the importance of preliminary tax
• Plan cash flow around tax payment dates
• Identify potential tax surprises earlier
• Use simple templates to manage cash flow
• Make better financial decisions during the year
• Feel more confident when dealing with tax and accounts

Programme outcome

This programme is not intended to replace professional tax advice. Instead, it is designed to help sole traders become better prepared, better informed and better able to work with their accountant.

The key outcome is simple:  participants should understand their numbers before the tax bill arrives.

This programme is delivered by Billy O'Connor of The Discovery Partnership / Consult Discovery Ltd. on behalf of LEO Cork City.