Why You Should Send In Your Tax Return Early
We all do it – put off sending in our Tax Return until the last minute – but is it the good idea we think it is?
Nearly 800,000 Self Assessment returns were filed on the last day in 2018, and hundreds of thousands missed the deadline which means substantial fines. The potential for overload on a system processing more than 12 returns a second makes getting your return in early worthwhile. If the system fails you will be lucky to get away without paying a fine.
Benefits of Filing Your Tax Return Early
1- If you are not registered for Online Assessment it takes some time to set up – leaving it until the last minute is not an option. Best case at off peak times is around two weeks to get your online self assessment set up – if you leave it until January you have little or no chance of getting your account set up.
2 – You know what your tax bill will be well in advance of the deadline for payment so you can save up for it, helping with budgeting and cash flow.
3 – You will avoid penalties – if you leave it until the last minute and the bill is bigger than expected leaving you short, you will be liable for penalties, and they mount up very quickly.
4 – If you are owed a refund, you will get the money very quickly after filing your return. When your return is submitted you still have until January 31 to pay your tax, but if you are owed a refund you will be able to use that money to help cash flow
5 – You have time to make sure you have all the relevant documentation without the last minute panic. A lot of businesses miss out on potential tax benefits because they didn’t have the paperwork to hand.
6 – If you have a problem the HMRC Call Centres are always snowed under in January and you might not be able to get the support you need to help you fill in your forms correctly.
7 – You have time to look at tax planning – if you have a good bookkeeper they will advise you on the best ways to ensure you are paying as much as you need and no more.
8 – If you have an accounting or bookkeeping service and need everything done in a hurry they may not be able to fit in the work – or will charge a premium for a rush job.
Having your tax affairs in order is crucial to good management, all businesses benefit from knowing where they stand. There are few benefits to holding out until the last minute to submit your return – especially if your business circumstance have changed or you are owed a refund.
One of the least recognised benefits of getting your Tax Return out of the way early is that you won’t have it hanging over your head for months so you can relax knowing exactly what you have to pay and when.
If you need help with your Returns why not have a chat with Farries Bookkeeping Services and see how we can help you make the most of getting your Tax return in early. To book your free consultation click here