Finance Article - June/July 23
Your Questions Answered by TaxAssist Accountants
Why should I do my self-assessment tax return early?
Are there any benefits to doing my tax return early, other than being organised?
Firstly, if you have an accountant completing your return, providing your records early will put you in their good books and, more importantly, will allow them to prepare your tax return without being rushed, thereby reducing the risk of any errors being made.
It's also important to bear in mind that some accountants may charge a premium fee if you provide your records close to the tax return deadline. This is because they may need to pay overtime to their staff in order to complete the return in time. Completing the tax return early reduces any additional staffing costs for the accountant.
From a cash flow perspective, completing your tax return early will allow you to budget for any tax liabilities coming due. This can be especially useful for those who need to make payments on account in July and January each year.
On the other hand, if you are due a refund from HM Revenue & Customs (HMRC), once your tax return has been submitted any money you are due can be processed and you won’t have to wait until 31st January. Therefore, if you think you are due a refund, it is better to know sooner rather than later and have the money back in your bank account.
Finally, completing your return early will ensure you are not in a position where a penalty for late submission or interest on underpaid tax could become an issue.
Need help filing your tax return?
At TaxAssist Accountants, we can produce and complete your tax return early, so you know how much tax needs to be paid and by when.
We work with many self-employed individuals and business owners, and we can help you too.
Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.