Finance Article - October/November 22
The Benefits Of Filing Your Tax Return Today
Although the tax return deadline is January 2023 and is months away, did you know there are many advantages if you file your tax return sooner rather than later? The better your record keeping, the easier it will be for your tax return to be completed accurately and before the deadline.
Time costs money
If your financial affairs changed this year, then putting them in order now will give you the space to think about any tax planning opportunities available to you.
File now, pay later
Calculating your tax liabilities and filing your return now will allow you time to start budgeting and managing your cashflow, and to plan for paying any tax you may owe. However, filing your tax return early does not mean you are obliged to pay any tax liability before the normal due date of 31st January.
Get a tax refund sooner
The earlier you file your tax return, the sooner any refund you may be eligible for will be processed. That will mean any money owed to you by HMRC could be gathering a few months’ extra interest in your bank account.
Beat the deadline
By delaying, you could risk missing the tax return deadline and face being issued with an automatic £100 filing penalty, no matter how much tax you had outstanding. If your tax return is more than three months late, £10 daily penalties will start building up until they hit a £900 peak.
We can help file your tax return
Tax is an ever-changing and increasingly complex field and unless you have expert knowledge, you may miss out on all the reliefs you are eligible for.
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.