Although it feels as though the January rush has only just come to an end, we have in fact just passed the end of another tax year (5th April). With this, a lot of people have already begun receiving their notices to deliver a personal tax return by 31st January.
Did you know that after deadline day the most popular filing day for personal tax returns is Christmas day? Filing personal tax returns must be one of the tasks people put off the most! However, while it may appear tempting to put it off until later on in the year there are a lot of reasons to get it done early in the year. Here Atkinson Accounts have compiled a list of 6 of these reasons.
1. Payment deadline remains the same
Regardless of the date your tax return is filed the payment deadlines will remain the same. This means no matter whether HMRC receive your return on 7th April or 31st January, the tax is not due until 31st January (and 31st July is payments on account apply)
2. Refunds will be received sooner
Unlike the payment’s deadline, HMRC do not wait until 31st January to refund you any overpaid tax. You will usually receive any overpaid tax back fairly quickly after submission. The sooner your tax return is prepared and filed, the sooner you will receive any refund you are due.
3. Cash flow management
The earlier your tax return is prepared the longer you have to acquire the funds for any payment due. This enables you to plan your cash flow effectively. You are also avoiding a lump sum payment just after what most people consider the most expensive time of the year!
4. Contacting HMRC
If any additional information or advice is needed from HMRC whilst preparing your personal tax return you will not want to have left it till the last minute! It is not uncommon for the telephone waiting time to reach over half an hour in January – and that is just to speak to someone. By filing earlier in the year, you have a much better chance of getting through with little to no waiting time.
5. Tax planning & saving
Rushing to do your tax return may result in errors or omissions that could lead to penalties. Preparing earlier means you will avoid the last minute scramble and will also give you time to seek out advice, ensuring you are claiming for all you possibly can.
6. Accountants (an entirely selfish point!)
If you plan on getting your accountant to prepare your personal tax return please give them a thought when considering when to send in your records! Many accountants have hundreds of clients and are often working considerable overtime hours in January, right up to the deadline.
If you require help or advice preparing your personal tax return, we would be happy to help! Please contact our offices on 01244 31 6449 or email us at firstname.lastname@example.org.
If you would prefer to file your return yourself, we have a few helpful articles on our News page which may be of assistance to you when working out what is allowable etc!