Why providing early tax return information could be especially beneficial this year
The last thing on most people’s minds after the self assessment tax return deadline in April is preparing the next one. This year perhaps more than others, it might be prudent to consider getting your tax information prepared and file your 2019/20 tax return early.
Alongside the usual benefits of planning for payments & avoiding last minute issues, potential benefits include:
Tax payments due at the end of July have been deferred until 31 January 2021. If you don’t make your payment on account in July, you will have double the amount to find in January. If you have done your tax return early, you will know exactly how much is due and you can plan for it accordingly.
On the positive side, if you are owed money by HMRC you may be able to claim this sooner. 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 minute returns make it HMRC's busiest time.
If your circumstances have changed in the last year, or you have some key decisions coming up, completing your tax return early will help you to look at the full financial picture. Clarifying the future at the moment, is essential to making important decisions.
Organisation & stress
This year has been unpredictable and turbulent for all businesses. Addressing your tax return early is within your control; it’s an action that you can take that will alleviate stress and provide you with a clear picture and timeline of what you owe and when.
If you are having a quiet period at the moment, take advantage of it. Now that businesses are beginning to reopen you will have to focus fully on making up for lost time…if you have already ticked this task off you will have a clear plate to focus on the next stage of your business.
If you need help preparing or filing your tax return please get in touch with one of the partners at Swindells using the contact
details that you can find here:
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