Filling in a Self-Assessment comes natural to some but for others it can be a daunting task that many people like to put off until the last minute.
This Blog is going to explain the importance of submitting your tax return early and some helpful tips to help you moving forward.
So who has to file a Tax Return?
Anyone that has received income that isn’t covered under PAYE has to submit a return no later than 31st October for paper copies and 31st January for online submissions.
Why is it important to submit your return early?
I encourage all of my clients and anyone filing their own return to submit one ASAP.
The biggest benefit is being able to manage your cash-flow.
Once the tax year ends on the 5th April then filing your return early allows you to calculate your tax liability and you then have until the 31st January to pay any tax due.
If you file your return during “Mad January” then you only have a short time to make sure you have any tax monies due therefore any payments made after the deadline date may see you receiving penalties and interest on the tax liability owed.
If you are in receipt of tax credits or benefits then you have to let the HMRC know of any income for the tax year by the 31st July, you can provide estimated figures however it’s best to submit actual figures to avoid you being overpaid or underpaid by the Tax Office.
Other items to be aware of…..
I can’t stress how important it is to make sure you keep your paperwork in order.
Once the tax year ends then having your income, P45/P60, invoices and receipts to hand makes your life so much easier rather having to pull your hair out trying to locate it all.
The HMRC will always want to see a receipt for any expenses claimed so anyone claiming without one could see their tax liability increase.
Taking your Time
My Father gave me some simple advise when I was younger “Don’t rush son, it’s not a game”
By completing your tax return online you can save your progress at any time allowing you to come back and complete another time.
This allows you to take your time and check over the figures to be submitted as mistakes could lead you to a tax investigation causing more stress.
You must also keep a copy along with the receipts a copy of the tax return in case an investigation arises.
Help is at Hand
If filing a tax return makes you feel like putting your head through a shredder then maybe seeking the assistance of an accountant is the best way to go.
Our office is always happy to help, for a free consultation then please ring the Alcester office on 01789 766866.