Eight Reasons Why Completing Your Tax Return Early Pays!
Updated: Jun 4, 2020
We all know that preparing to submit your tax return is one of those jobs that you would rather put off, as there are always other things on the list that appear more interesting or may seem to be of higher priority. However here are eight great reasons why it could pay you to get organised and submit your tax return early.
If it’s your first tax return it can take a while to get registered and to receive your login details and so if you leave it until the last minute you will risk filing your return late and as a consequence getting a fine.
Getting in touch with HMRC can be difficult at any time of year, but the phone lines are ridiculously busy in January. By getting things sorted earlier, if you have any queries you will hopefully avoid wasted time spent in phone queues.
If you submit your return early you don’t have to pay any earlier, but it will give you time to save what you need to pay and will take the pressure off.
The cash flow of any business can be difficult to manage at the best of times and so knowing what you have to pay before you need to can make it much easier on your cash flow.
If you are due a refund and you submit your return early, you will receive your refund early and this could be a welcome input to your cash flow.
You could reduce your tax bill if you have payments on account. (Payments on account are advance payments for your tax liability for the next tax year and there is a legal requirement to make payments on account if you tax liability is more than £1k or if less than 80% of your tax is deducted at source i.e. PAYE).
Why would you want to pay HMRC more than you have to? By submitting early there will be no risk of late penalties.
Christmas and New year should be a time to relax and enjoy yourself and so by submitting your return early you can relax and enjoy the festivities.
We hope these eight points prove to be helpful and highlight the need to get organised. If you are already a client of Cube Accounting and you would like to submit your return early, feel free to send across your information and we can look to get your tax return completed and submitted for you in plenty of time. If you are not a client and you would like to know more about how we could assist you and your business, get in touch and we can talk through the options available. We do not have any expensive retainer fees or packages, you simply pay for the services you use.
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