Article
The benefits of filing your tax return today
The deadline for tax returns is 31st January. Instead of waiting until January to file yours, consider the reasons to file your self-assessment tax return early.
By Catherine Heinen, FCCAThe one good thing about the self-assessment tax return deadline is that it always remains the same – 31st January (when filing online). This means that with the help of your accountant and some organisation from yourself, you can avoid facing the penalties and stress of filing your tax return late or last-minute.
Maintaining easily accessible and up-to-date records of your income and expenses throughout the year, means it will be easier for your tax return to be completed accurately and well before the deadline.
Here we explain why you shouldn’t delay in filing your self-assessment tax return.
You don't have to pay your tax bill early
Filing your tax return early doesn't mean you have to pay your tax at the same time, you can wait until 31st January. Calculating your tax liabilities and filing your return now will allow you time to start budgeting and managing your cashflow ready to make your tax payment. You can plan for paying any tax you may owe by the deadline of 31st January.
Pay your tax through your tax code
If you owe less than £3,000 in tax and file your tax return before 30th December you may be able to have your tax liability collected through your tax code. This means your tax will be taken from your salary at source over a period of time and can be a great option to spread the cost and ease the pressure on your cashflow.
Get your tax repayment sooner
Refunds of tax can arise for employees and directors due to issues with tax codes. Also, it is not unusual for building subcontractors operating under the Construction Industry Scheme to receive tax refunds.
The earlier you file your tax return, the sooner any refund will be paid to you. Don't wait until January to file your tax return, you'll be waiting longer for your refund and missing out on bank interest while the money sits in your bank account.
Need support with your tax return today?
Contact TaxAssist Accountants for a free, no-obligation consultation.
Or contact usAvoid penalties and late filing interest
If you delay in filing your tax return, you risk missing the deadline and facing an automatic £100 filing penalty, no matter how much tax you had outstanding. If your tax return becomes more than three months late, £10 daily penalties will start building up until they hit a £900 peak.
Should your tax return become more than six months late, then a penalty of the higher of £300 or 5% of your tax due will be charged. The same level of penalty is applied again if the return becomes over 12 months late. All of these penalties are in addition to one another, and as a result of this the penalties for a late tax return could hit more than £1,600.
Give yourself plenty of time to prepare your tax return
If your financial affairs changed this year, then putting them in order sooner rather than later will give you the time to think about any tax planning opportunities available to you. Apps like Dext make it much easier to keep track of all those bits of paper that build up over the months. Speeding through your tax return at the last minute increases the risk of mistakes being made. Giving you and your accountant time means your tax return will be correct and complete.
For more benefits take a look at our detailed benefits of filing your tax return early guide.
We can help file your tax return
Tax has become an ever-changing and increasingly complex field and unless you have expert knowledge, you may be left bewildered and miss out on all the reliefs you are eligible for. Without the help of an advisor, you could end up paying too much tax without realising, or accidently pay too little and risk an investigation.
So why wait, call us today on 01480 592001 or use our simple online enquiry form and beat the deadline, be safe in the knowledge that you can be relaxed about your tax.
Get help and save time with our tax return service
Contact TaxAssist Accountants for a free, no-obligation consultation.
Or contact usFrequently Asked Questions
If you miss the tax return deadline there are a number of consequences. You will be charged interest and a late filing surcharge.
Filing late can increase the likelihood that you will be chosen to be audited by Revenue and uou could lose your entitlement to government grants and subsidies as businesses must be entitled to a tax clearance certificate to qualify for these schemes. If you have missed the deadline the most important thing is to get the return filed as soon as possible.
Tax Credits reduce the amount of tax that you pay. The tax credits you are entitled to are dependent upon your personal circumstances.
Another great way to save money on your tax bill is to pay into a pension. The government offers generous tax relief at your highest tax rate.
For those that use Revenue Online Services (ROS) the pay & file deadline is Thursday 14 November 2024.
Date published 17 Aug 2018 | Last updated 8 Oct 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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