On The Spot Blogs
It's Tax Return Season - 5 reasons to avoid the rush
You do it every year.
You know it’s coming, like your partner’s birthday or Christmas, yet more often than not, you leave it till the last moment. Probably it’s because it’s one of those tasks which is always looming in the background and you don’t really like doing it. All those receipts, all those invoices.
You ask yourself "Why don’t I get it done earlier and avoid the stress or rushing around when I have plenty of other important things to do?” Here are five very good reasons to get next year's tax return in quickly:
1 - You may be due a tax refund
If so, don't you want that cash in your account rather than HMRC's? Refunds do occur quite often.
If you’re a start-up sole trader still working in a PAYE job and you had a PAYE job in the previous few years, you may be able to claim a tax refund for the PAYE income tax you’ve paid.
Even for employees, your tax code may have been wrong or you paid more tax-deductible costs, like charitable donations, than the year before.
2 – Certainty
If HMRC need to ask questions, they have 12 months from the date you file the return. So, if you submit it on 6 April 2019, HMRC must ask questions by 5 April 2020.
Firstly, HMRC is likely to regard an early filing as a good thing. Secondly, they need to be very organised to get their notice to you that early in the tax calendar. And thirdly, you have more certainty that your tax bill is agreed.
3 – Quality
With more time far away from a deadline, the job isn't rushed and less errors are likely to arise.
4 – Be proactive
More time also allows you and your accountant to review your tax position, discuss your business and your future plans, and take action at the beginning of the next tax year in good time and with proper consideration.
All in all, less stress.
5 – Smile
You can fully enjoy Christmas and the New Year without your tax return hanging over you!
At On The Spot Tax Accountants, we work with you throughout the year. We get to know your business inside out and keep your records up-to-date to avoid the end-of-year panic.
If you’d like this approach to the wonderful world of tax and accounting, call us for a free initial chat.