During summer, most people want to relax and enjoy the weather without considering their tax returns, and as September comes around, some may still hesitate to start on their annual filing.
With the deadline not for another few months, you may ask yourself why you should worry when there’s so much time left.
But, those clever enough to get ahead of their annual accounts may find themselves able to save some money which could be better spent on the finer things in life.
Here’s why AssureTax thinks you should file your tax return this September.
Planning for your business is essential if you want to make the most out of your profitability or even save money in areas you’re spending too much.
This is why getting your tax return done this September will help, especially for self-employed people. By filing your returns as soon as possible after the start of the tax year, you can find out how much you’re likely to pay, giving you the chance to put some money aside to make the payments or for anything else you may need over the year.
Having the freedom and flexibility to reinvest money in your business, knowing your taxes are planned for, will be invaluable.
Receive an early tax refund
As you have the time on your hands, you can check your accounts to ensure everything is correct.
Some people find that they could have an error in their tax code, which means they end up paying too much tax. The same applies if you’re a contractor and deductions are made at source through the construction industry scheme (CIS).
Or, it could be a case of finding yourself in a loss position if your business was affected by COVID-19.
If you have paid too much, now is the time to apply for a refund. As most others will be waiting a while before submitting their returns, this frees up HMRC and means your refund should be processed much faster.
If you wait until the last minute to file your tax return, not only are you running the risk of a late payment penalty but also increasing the chances of making minor mistakes which can prove costly.
Filing your tax return after midnight on 31 January will mean you automatically receive a £100 penalty, no matter how much tax you owe.
Miss the deadline by three months, and the penalty will increase by £10 per day until you hit the £900 maximum threshold.
Any mistakes you make could lead to fines or, worse, an investigation by HMRC. So it makes sense to start it early and take your time. There’s nothing worse than running against a ticking clock.
Giving you more time
Sometimes, getting your tax return done early isn’t just about money. If you get your return out of the way, it frees up time you could spend poring over the other, more pressing areas of your business.
If there are things you have been putting off due to time constraints, now would be the time to focus on them.
If you want to save yourself the stress of your annual tax return, then the experts at AssureTax can help. We can talk to you about your personal or business tax and give you helpful and supportive advice.
Contact us to discuss our tax services.