As most business owners will know, the end of January is the dreaded time to complete your self assessment tax return. It’s one of those tasks that no one wants to do. However, there’s nothing stopping you from completing your tax return early and getting it out of the way.
You can start your tax return as soon as the tax year has finished; this means getting it out of the way and not having to spend the rest of the year with it gnawing away at the back of your mind.
And there are some real benefits of submitting your self assessment early too…
You have more time to complete your self-assessment.
Starting early means there is no big rush and this is important in avoiding making any mistakes and unnecessary stress. You have more time to gather all of your information and organise your admin too. If it’s your first tax return, you also need to consider how much time it takes to register your business for a self assessment, in some cases this can take up to ten days, plus the deadline to register for self assessment usually falls in October.
On the other hand, you also have the opportunity to ensure your tax bill is correct and consider aspects such as tax relief from working from home and appeal if you feel like something might be incorrect.
HMRC becomes busier and harder to contact in the lead-up to the self-assessment deadline.
As you can imagine, HMRC gets inundated with calls and emails asking for support, questions or highlighting any issues right before the deadline. If you have any reason to contact them, it will be harder for you to get a response. However, by completing your tax return earlier, not only will HMRC most likely be more available to contact, but you will also have more time to wait for a response too.
There’s less chance of being fined.
If you miss your deadline, HMRC is quick to send out fines. By waiting until the deadline, you’re increasing the chances of being fined. By filing earlier, you will be more aware of how much money you owe, be able to save what you need and pay it off before the deadline. No surprises and everything is submitted and out of the way before the festive season even begins.
It’s a much quicker process.
When you complete your self assessment early, you’re more likely to receive a quicker response. This is handy if you’re looking to pay off your bill straight away or if you want to know how much your tax bill is going to be so you can prepare for it. Another reason is that if you’re expecting a return from the Government for paying too much tax, you’re more likely to receive your return sooner.
The payment deadline remains at the end of January.
Although you have filed your self assessment, you won’t have to pay off your tax bill until the deadline (just like everyone else). This means there are no nasty surprises on how much money you owe, plus you have time to save and prepare yourself to pay off your bill. If you file right at the end of the tax year, you have around nine months to save and pay off your bill. The GOV.UK website also gives you the option to pay off your bill in parts too, meaning you can make a payment every month until January.
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