Hands up…do you look forward to tax return season or are you guilty of letting it niggle you until the deadline is in your face?
We know filing your Self Assessment Tax Return is not your most favourite job in the world. But we’ve pulled together 8 great reasons why you should file it early. Take a look, it will make you feel better…
1. Are you registered?
If you’re not, then it can take some time to sort this out. First you’ll have to apply online to register with HMRC, and then they will send you an activation code by post. All of this can take at least 7 working days to complete, so don’t leave this until last minute as you may miss the deadline before you’ve even started.
2. Pulling the information together takes time
So why put yourself through the last minute panic of looking for bills, invoices, receipts, interest statements, P60’s, etc. A regular one we see is people needing access to old bank statements and having to wait for the bank to send these across. Pull together a list of everything you need and start to pull it togther now. That way, nothing will be missed, you won’t be stressed and you can maximise any claims for tax relief.
3. Some lucky people get a tax refund
It’s not everyone we know, but some people’s circumstances do change and you may be entitled to a tax refund. Why let it sit in HMRC’s pocket when it can be in yours.
4. Make use of your Tax Code
If you owe less than £3,000 in tax and you have a PAYE tax code, then if you file before 30th December, HMRC will let you pay your tax bill via an adjustment to your tax code instead of you having to pay your tax as a lump sum. What a great way to get a cashflow benefit and it could be in time for Christmas too.
5. Avoid Penalties
The penalty regime around Self Assessment Tax Returns is pretty onerous with instant fines starting at £100 for missing the 31st January filing deadline. HMRC will issue penalties not just for being late filing your return, but another penalty will be issued if the tax is paid after 31st January too. The longer you leave it after the deadline, the higher the fines will be, so best not to go there.
6. HMRC Phonelines are overwhelmed every January
They haven’t got good taste in music either, so why would you want to spend at least 10 minutes waiting, listening to the same tune over again, on hold to speak to an adviser, when contacting HMRC is a lot easier in other months.
7. Have yourself a Merry little Christmas
Give yourself the gift of not having this as an irritating niggling at the back of your mind, and instead head into the holidays with a clear conscience.
- You know your tax return is sorted
- You know how much you have to pay and by when
- You’ve avoided the penalty
- You can feel smug when others are complaining about their tax return after Christmas, and…
Usually a month where most of us struggle, so make it your business to take a load off the January blues and get this out of the way.
If you’d like to have a chat with us about our services and find out more about what tax you could be saving, book a call to get started.