Why File Your Tax Return Early?
Tax returns are not usually something most of us think about filing as soon as we can at the
end of the financial year. However, there are benefits to getting it done and out of the way
as soon as possible.
At this time of year, most businesses will be receiving reminders from their accountants to
get their paperwork done to enable their accounts to be worked on and filed with HMRC.
Leaving it until the last minute is stressful for both you and your accountant, so read on to
discover why filing early is recommended.
There are several reasons why we suggest this and some/ all of them could assist you with
the financial planning for your business over the coming year.
Filing your tax return early does not mean you have to pay it early, you can still make your payments up to the January deadline. However, it does mean that you will know how much you will need to pay and can work this into your cash flow over the months leading up to when the payment is due.
If you are due a tax refund, completing and filing your accounts early will enable the refund from HMRC to be processed more promptly.
If you have a payment on account due in July and you think your profits for this year may be less than the previous year. Filing your accounts now could mean you may not need to pay the full amount due in July. However if your tax does end up being more you will not have extra to pay in July, just the preplanned amount and the difference next January.
If you are looking to move house and will be applying for a Mortgage, you will require the usual SA302’s and tax return overviews. You could use the previous year's accounts, however, if the current year has been better these would be the best figures to put into your mortgage affordability calculations. Therefore getting your paperwork to your accountant promptly should enable them to be completed and filed in a timely manner to assist your mortgage application.
The last reason for getting your tax return filed early and probably the best is to tick it off that to-do list. So that when everyone else is rushing to get theirs done next January, you can sit back without any worries as yours will already have been filed.
So to summarise, filing your tax return early can not only give you peace of mind, it can also
help with tax payment planning, money management, mortgage applications and prompt
payment of any refunds due.
If you would like to discuss this further please get in touch and we look forward to receiving
all your paperwork soon.
Office: 01788 815 017
Mobile: 07796 445 115