With the calendar year drawing to a close but the tax year end still lying ahead, making a plan and provision for payment of your future tax returns could be a worthwhile focus when drawing up your list of New Year’s Resolutions; to make this process less stressful and save you time, effort and money.

Making a plan for payment of tax

While many people focus on ways to reduce their tax bill, fewer consider how best to make provision for paying it.

It’s always a good idea to set the money aside and to deposit this not just into a regular bank account, but into an account paying the best possible rate of interest.

Many businesses can be faced with a six or even seven-figure tax bill – a large sum of money that can be burdensome, but which conversely also represents a significant opportunity.

With corporation tax due nine months after the end of a company’s accounting period, financial directors, owner managers and contractors have a defined period of time over which to generate interest income on the payable sum.

How to get the best ‘return’ from your tax return

There are several options available to individuals and businesses who are looking to optimise the interest income on the monies before submitting payment, or indeed to grow their money to meet the requisite amount due.

If you’re organised and plan ahead, a fixed term deposit account could be the most effective way to earn the optimal amount of interest. Fixed term deposit rates are typically higher than instant access or notice account rates but because your money will be tied up until the end of the term it’s vital that you check the maturity date aligns with the deadline for the payment of your tax bill.

Alternatively, one or more notice accounts could prove to be more suitable for your circumstances given the greater degree of flexibility they offer compared to fixed term deposit accounts. In the same way as term accounts, planning ahead and factoring the longest possible notice period into your account choices will typically translate into a better rate of return.

Making it easy

Scouring the market for the best possible rates across different term and notice periods can be time-consuming however, and the process of physically opening these accounts can be laborious; sometimes taking weeks or even months.

The Flagstone cash deposit platform eliminates this hassle. It gives you access to hundreds of term deposit and notice accounts from an extensive panel of banks and the opportunity to identify market-leading rates and open multiple accounts in just a matter of key strokes.

Fixed Term Account deposit rates currently available on the Flagstone platform include a*:

• 6 Month Fixed Term Deposit Account for Individuals and Corporate Clients 1.55%
• 9 Month Fixed Term Deposit Account for Corporate Clients paying 1.75%
• 12 Month Fixed Term Deposit Account for Individuals and Corporate Clients paying 1.90%

Notice Account deposit rates currently available on the Flagstone platform include a*:

• 95 Day Notice Account for Individuals and Corporate Clients paying 1.80%

Get in touch with Flagstone today to learn more.

This article is not advice. If you would like to receive advice on your savings and investments, consider speaking to a Financial Adviser.

*Correct as at 16th December 2019.