The personal self-assessment deadline is getting closer, and while there are still several months to go before the 31st of January, we know from experience that clients who get their tax return in early tend to have an easier time. With that in mind, in this article we’ll look at why you should take time out of your busy schedule and get your self-assessment tax return sorted now.
You could be eligible to pay via PAYE
If you get your return in by 30th of December, you could have the option to pay through your PAYE coding notice, rather than making a separate payment to HMRC. This option might be available to you if:
you owe less than £3,000 on your tax bill
you already pay tax through PAYE
you earn enough through PAYE to cover your tax bill
You’ll have more time to pay
The deadline to pay any tax you owe is also 31st January, and this is obviously easier to plan for if you give yourself more time. Filing your self-assessment tax return now will remove any uncertainty about how much you have to pay, and will give you the opportunity to plan it into your budget.
Your accountant will also have more time to plan
Given time to dedicate to it, your accountant can help you implement a tax planning strategy that will minimise your tax and save you money but that relies on you having time to implement the strategy. Preparing your return too close to the deadline could mean you miss tax-planning opportunities and end up paying more tax than you need to.
It will remove the risk of penalties for late filing
Until you submit your self-assessment tax return there is a risk that you won’t get it done in time. If you miss the deadline, it will cost you at least £100 and possibly quite a lot more depending on how late you are. If there’s nothing preventing you from submitting now, you can remove that risk before something gets in the way and save yourself an unnecessary expense.
You’ll avoid the last-minute rush
As the self-assessment deadline approaches, both your accountant and HMRC will get progressively busier, and any issues will become more urgent and harder to deal with. An issue or query that would be easy to deal with today could become a stressful emergency if left until December.
December is busy enough
Most of us have enough to do in the run-up to the festive season without adding another critical or urgent task to the list. Finding time for it now will leave one less thing for you to worry about, making what is often a stressful and hectic time a little bit easier.
You’ll get any refund sooner
If you’re due a refund, you’ll get it sooner if you submit your return sooner, and most of us would prefer our money in our account, rather than HMRC’s.
If you have questions or if we can help in any way, please call our expert team on 01296 468483 or email info@orangegenie.com.