Every year the 31st of January sends hundreds of business owners into a spiral of unnecessary panic and stress. There are actually 2.3 million people who submitted their tax return for last year on the deadline. This is 2.3 million people feeling frazzled and overwhelmed.
It doesn’t have to be this way. Not only does it make your life easier, there are heaps of other benefits to those who submit their tax return in advance of the deadline. We’ve pulled them together for you:
1. You don’t actually have to pay your tax until the deadline.
Are you putting off filling your tax return because you’re not quite ready to front the bill? This is a common misunderstanding! Actually even if you filed your tax return tomorrow, you still won’t need to pay the bill until the 31st January. But this way you will know exactly where you stand with your taxes.
2. You have nine months to save up for the tax bill!
If you spend the rest of the year burying your head in the sand, more than likely your tax bill will come as a nasty surprise. However, finding out early how much tax you are due to pay gives you the time to put a plan in place to save this money and help with your cash flow. If this sounds daunting, get in touch with your accountant, we are happy to help you come up with this plan!
3. Get your repayment in your account.
If you’re due a rebate from HMRC, it is a no brainer to get your self-assessment submitted as soon as possible. HMRC fulfils tax refunds as soon as you have filed your self-assessment. Meaning you can have extra cash back in your pocket. This also really helps with cash flow, if this is something you’re struggling with check out our previous post.
4. Proof of Income
Make your personal life easier, having an up to date proof of income makes it much easier for you to apply for finance. Filling your tax return will show how much income you have declared to HMRC. Providing lenders with the information they need to progress your application.
This finance could be in many forms:
- Vehicle Leasing
- Universal Credit
Filling your tax return early in the year means that if you decide to re-mortgage or lease a new car you won’t have to panic that you don’t have all the right paperwork.
5. One job done!
Leaving your tax return until the last minute is stressful and often leads to the omission of documents. January is also the busiest time for HMRC and if you would like to avoid learning their ‘hold’ music off by heart. Then we highly recommend beating the queue and getting in early. You can also sleep easy knowing you have ticked one more thing off your to do list!
We believe that a personal approach to client management is important! We ensure that we always go the extra mile to make sure that your accounts are up to date and comply with all regulations. With our expert knowledge we are happy to advise you on all finance related matters.