25 Jun Tax return filing
Why should I file my tax return early?
More than 77,500 tax payers submitted their returns on 6th April 2023. What are the benefits of filing early?
You will know how much you need to pay and when well in advance of any deadline. This will give those who haven’t saved for it time to save it.
Remember in the first year that your tax bill is over £1,000 you enter the payment on account scheme and effectively pay 150% of the tax due which has a big impact on cashflow. (See payment on account blog).
If your tax bill is less than £3,000, you complete your tax return by 30th December and you have PAYE income you can choose to have your tax liability collected via your tax code.
Peace of mind and to avoid the stress
When you hear the reminder adverts later in the year you won’t need to panic and you can relax over Christmas and new year instead of panicking that the deadline is looming.
Get your tax rebate quicker
If you are due a tax rebate this can take anywhere between 5 days – 8 weeks (and in some cases, even longer!).
The main reason for the delays in issuing rebates is that HMRC are extremely busy, especially in January. Rebates also have to go through various security checks and if it fails any of these this will delay the repayment.
Have everything you need to secure a loan or mortgage
SA302s are only available once your tax return has been submitted and therefore this may delay your application.
Give you time to get expert help if required
I get multiple calls in January from people attempting their return themselves, only to get stuck and then seek advise.
Depending on how late you leave it you may find most accountants aren’t accepting new clients and therefore you might end up with one that isn’t a good fit with you. You may also be charged a premium!
Fresh in your mind
Avoid my fee increases
Set a date in your diary now to get your records in order and get them over to me well in advance of the deadline. You will feel so much better for it!