Transforming Tax from Burden to Strategy
In this episode, we’re making tax talk simple, strategic—and surprisingly empowering.
I’m Deb, a Profit First Professional, and I’m here to demystify the often overwhelming topic of tax for business owners. Rather than viewing tax as something to fear or avoid, we’ll reframe it as a sign of business success—and show you how to plan for it with confidence.
You’ll learn how setting up a dedicated tax account and using the Profit First method can eliminate the stress of surprise tax bills. We’ll cover common pitfalls, like confusing profit with cash flow or relying solely on your accountant to handle everything.
This episode will help you turn tax from a dreaded burden into a routine part of your financial planning—so you can focus on growing your business, not fearing the next HMRC deadline.
About the Podcast:
This episode of the Financially Healthy Business Podcast cuts through the fear and confusion surrounding taxes—and gives you a clear, proactive way to stay in control.
We explore why so many business owners end up blindsided by tax bills, and how a few simple shifts—like setting aside a fixed percentage of revenue—can protect your cash flow and give you peace of mind. You’ll also learn why profit and cash flow are not the same, and how understanding that difference is key to financial stability.
Tax doesn’t have to be scary. With a bit of planning and the right systems in place, it becomes just another part of running a sustainable, profitable business.
With 15–20 minute episodes designed to guide you step by step, this podcast offers practical, judgement-free advice to help you build a business that funds your freedom—not fuels your stress.
Let’s make taxes work for you—not against you.
Takeaways:
- The podcast emphasizes the importance of proactive tax planning to alleviate financial stress for business owners.
- Listeners are encouraged to establish a dedicated tax account to ensure funds are set aside for tax obligations.
- The discussion highlights the mindset shift needed to view tax as an indicator of business success, not a burden.
- Key tax mistakes include neglecting VAT and confusing profit with cash flow, which can lead to financial difficulties.
- The Profit First system is presented as a method to integrate tax planning seamlessly into business finances.
- The episode concludes by urging listeners to take actionable steps towards financial preparedness and control over their tax obligations.
Links referenced in this episode:
Companies mentioned in this episode:
- hmrc
- Accounts Ladies
- Accounts Office Academy
- Profit first
- Financially Healthy Business Podcast
Transcript
Financially Healthy Business Podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
I'm Deb Halliday, Profit first, professional founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business. Learn how to take control of your finances, reduce stress, and grow sustainably because your business should support your life, not consume it.
Let's get started. Welcome back to the Financially Healthy Business Podcast.
I'm Deb Halliday and in this episode, number eight in our series, we're diving into something that causes panic for so many business owners. Tax. Yes, I know it's not glamorous, exciting, or even particularly fun.
But if you've ever been hit with a tax bill you didn't see coming, or if you live in fear of that brown envelope from hmrc, this episode will change that for good.
We're going to talk about how to plan for your tax bills, avoid nasty surprises and turn tax into something you're calmly prepared for, not afraid of. Let's take back control of your taxes. The problem why Tax feels scary so many business owners treat tax like an afterthought.
They run their business all year long, fingers crossed, hoping there'll be enough left when the tax bill lands. And if there isn't, they panic, dip into credit cards or loans, or worse, ignore it and hope it goes away. But tax doesn't go away.
And avoiding it doesn't reduce the bill. It only increases the stress. Here's what I want you to take away Today, tax is just a percentage of profit. And profit can be planned for.
You don't need to fear tax when you have a system for it. The system Profit first plus Tax Pots. In the Profit first system, tax isn't a surprise. It's a line item.
You put it aside in advance based on a percentage of your real revenue. Here's how it works. Create a dedicated tax pot or account. Label it clearly this is not your slush fund. It's sacred. Calculate your tax percentage.
In the UK, I usually recommend starting at 15% of real revenue, but this may vary depending on your setup and deductions. If you're VAT registered, make sure to separate that out too.
Transfer that percentage every time you do your allocations, whether it's weekly, biweekly or monthly. Just make it consistent. Leave it alone. Seriously, don't dip into it. Even if you're tempted. It's not your money. It belongs to the government.
By the time your tax bill arrives, you'll be ready. No panic, no scrambling, just calm control. Common Tax Mistakes and How to Fix Them let's cover a few tax traps I see all the time forgetting VAT.
If you're VAT registered, don't treat that 20% as income. Set it aside from the moment it hits your account. Confusing profit with cash.
You can be profitable on paper, but if your money is tied up in stock, debtors or big annual payments, you'll still feel broke. Cash flow planning helps fix this. So does keeping separate accounts. Mistake 3 leaving it to the accountant.
Your accountant's job is to report it, not manage your day to day cash. That's your job and you can do it with the right structure. Mistake 4 no system. The biggest issue is simply not planning for tax at all.
But once you automate your allocations, it becomes a non issue. This is how financial peace is built. Bit by bit, percentage by percentage.
Mindset Shift Tax as a Sign of Success here's something that surprised me when I made this mindset shift Paying tax means you're making a profit. It means your business is working.
And while yes, none of us like paying tax, when you have it set aside, it feels like a grown up milestone, not a punishment. You're not winging it anymore. You're running a financially healthy business. Tax doesn't have to be scary. It's just another number to plan for.
So here's what I want you to do this week. Set up a dedicated tax account, or pot, even if you're not registered yet. Get into the habit. Now look at your last three months of real revenue.
Calculate 15% of that figure. That's what you should have set aside as a minimum. If you're behind, don't panic. Just start from here.
Build it into your weekly allocations going forward. Next episode we'll look at performance monitoring, how to track the right numbers in your business so you're not flying blind.
We'll talk about metrics, dashboards, and how to hold yourself accountable to your goals, even if you hate spreadsheets. Thanks again for listening. You don't have to dread tax anymore. You just need a plan.
I'm Deb Halliday and this is the Financially Healthy Business Podcast. See you next time. Thanks for tuning in to the Financially Healthy Business Podcast.
If today's episode helped you take a step closer to building a business that supports your life, share it with a fellow business owner. Follow the show or leave a review. It all helps to get the message to the people that need it.
Head to how to build a financiallyhealthybusiness.co.uk and explore the tools, resources and online programs. You didn't start your business just to survive, you started it to thrive.
