Completing your tax return early and why you should be thinking about doing it…
A number of small and large businesses including those in self-employment are still leave the filing of their paper and online tax returns until the last minute. However, there are a number of reasons why you'll actually benefit if you give your accountant the information they need to get your return in early.
Here they are:
- Filing early doesn't mean having to pay early!
Knowledge is power…you will gain peace of mind knowing how much you have to pay, without having to make the payment immediately. You'll have time to prepare and plan your finances safe in the knowledge that you have all the information to hand well before the deadlines.
- You can speed up your tax rebates
The earlier you fill out your return, the faster you'll be able to get any repayments or tax rebates back. Employees and directors can sometimes be eligible for refunds, and HMRC does sometimes make mistakes. If you're eligible for a refund, you'll get your money back faster if you complete your return early. Refunds usually take longer when issued in January as all the last minuters clog up the systems to make it HMRC's busiest time.
- Improve cash flow.
It's not uncommon for sole traders and partners to have to make additional tax payments in advance for next year's bill. These are known as 'payments on account'. If your profits vary somewhat and you want to improve your cash-flow, it's better to know in advance if you're going to be required to make such a payment, so you can prepare for it.
- You can plan for the payments.
If you're a seasonal business, it will be in your interest to know how much you'll need to pay. If you get the total figure before your busy season, you'll be able to put back the right funds without having to rely on off-season business, which will inevitably be more inconsistent.
- You'll avoid last-minute problems.
Even if you work with a knowledgeable local accountant, you'll need to provide the relevant information to them. As such, it's to your advantage to not leave it until the last minute. If you end up rushing around two days before the deadline, you might end up making mistakes; any delays could incur a tax penalty. You might discover that you don't have some of the information required and get fined as a result of a late return. Get it done early, and save yourself the stress.
If you’re struggling under the weight of work and want a skilled, experienced accounting partner to help you through the process…perhaps it’s your first tax return or you’re just too busy! Do give us a call and we can help alleviate some of the strain and stress of tax return season so you have it all done and dusted and another item checked off of your list.
If you want to get ahead of the game with your business or self employed tax return let’s get the process rolling; just drop us a quick call and we can advise you on the next steps:
Uckfield: Email us on email@example.com or call on 01825 763366
Seaford: Email us on firstname.lastname@example.org or call on 01323 892549
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