A third of self-employed people consider saving for tax the most complex part of running their business, so we're creating a feature that allows you to do that within the Coconut app.
It's understandable - tax isn’t the most straight cut system. There’s your legal set-up to consider, different tax bands based on your income as well as national insurance. And most people have to figure this all out whilst also trying to get their new business up and running. It’s a big adjustment if you’ve made the leap from traditional employment, where this was all done for you.
That was one of the main reasons we built a tax estimate into the Coconut app quite early on. We want to remove the stress and ambiguity related to taxes. But we've got more work to do!
Knowing how much tax you owe is just one part of the problem.
Over a quarter (27%) of self-employed people surveyed either overestimate or underestimate how much money they actually need to set aside to pay their tax bill at the end of the year.
The problem is clear if you happen to under-save; more stress come tax time in getting the money together. But there’s also a lost opportunity when you over-save; the opportunity to invest more throughout the year in your business.
So actually, setting the right amount of money aside to pay your tax bill is key. This is something we’ve been focusing on over the last few months and we can't wait to share it with you.
What we’re setting out to do is very ambitious and it will take us well into 2021 to achieve, but we also want to get it right. So we’re breaking it up into smaller chunks that are released over time, making sure we get your feedback along the way.
Here are some of the challenges we uncovered when speaking to customers about how they do this at the moment:
We really believe it doesn’t need to be this complicated and our approach is simple:
All of this from within the Coconut app.
We’re really excited to get this feature to all of our customers and we can’t wait for you to give it a try.
Interested? Join the waitlist here and be amongst the first to hear when it goes live.
VAT management has arrived at Coconut. Start recording VAT on all of the transactions you make through your Coconut account today.
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Coconut gives you a personal tax estimate for sole traders, and a corporation tax estimate for limited companies. Make sure you set it up right, here's how.