The deadline for your self-assessment tax return might be the end of January 2023, but there’s a very good reason to get yours done during the summer lull.
You might have expected a blog on the benefits of getting your tax return early in the winter or even the autumn, but with tax, earlier is always better than later.
Furthermore, this is a good time to think about your taxes anyway, given the fact that you need to register for self-assessment if you’re self-employed or a sole trader by 5 October if you aren’t registered already.
Besides, if you’ve got to get on with a dull task, you may as well do it in the sun.
Here are just four reasons why you should get your tax return done now.
Optimise your tax return
Don’t underestimate the complexity of your tax return. While it might seem like a simple task, requiring only a fair amount of box-ticking.
The truth is, however, there’s a lot of work to put in if you want to make your tax return work for you by exploring all the tax allowances that can allow you to keep some more of your hard earned money.
There’s also more time to ask questions, go backwards and forwards if required, and make sure you use every tax break available to you within the rules.
Reduce the chance of error
When you’re in a rush, it’s easy to miss something or be unable to find a key document, which could lead to you sending in an incorrect return or missing the deadline altogether.
A late filing results in an automatic minimum penalty of £100 on top of any tax due (and interest). In a worst-case scenario, you might trigger an HMRC enquiry, which can be stressful and costly.
We can help you mitigate and resolve any HMRC enquiry that comes your way to keep the costs down.
It’s good to bear in mind, too, that you have until 31 October if you want to complete a paper tax return.
Time to pay
31 January isn’t just the date you have to file your tax return – it’s the date you have to pay your tax bill.
The earlier you prepare your tax return, the sooner you’ll know what you have to pay and be able to prepare – especially important during the cost of living and doing business crisis.
Peace of mind
It may be a nuisance to sit down and do the admin for your tax return, but the longer you put it off, the longer you have it hanging over your head.
So, get it done right away and enjoy ticking off so you can use the summer lull to truly relax. Plus, it means you won’t have to get your tax return done in the cold and miserable autumn or winter months.
We can take on the legwork of your tax return if you need some assistance, whether that’s just doing the calculation, the entire return or something else.
The sooner you start the process, the more opportunity there will be to give you advice and reduce your tax bill.
Get in touch with us today.