It can be tempting to leave sorting out the dreaded tax return until just before the self-assessment deadline on January 31, but there are several benefits to filing earlier.
Just as specialists such as office-support.co.uk/bookkeeping help businesses stay in a healthy financial position, filing your tax return early can be an integral part of sound financial planning. If you don’t know already, filing early will let you know what your tax bill is and give you time to sort out the money to pay it. This prevents you from finding out at the last minute that a big bill is due and being fined because you don’t have the funds in place to cover it.
Just as searching for bookkeepers Hereford at quieter times can reap more results, filing early when HMRC isn’t so snowed under could also mean that you get any rebates quicker. Find out more about tax rebates on the HMRC website here.
Filing in good time can be really important if you have never filed before. This is because extra time is needed to cover registering with HMRC. You will need to receive your Unique Taxpayer Reference and your access code before you can use online services, for example, and this can take 2 weeks or even longer at peak times.
Sometimes tax can be a complicated affair and you should leave time for HMRC to answer any queries. You also probably want to avoid the longest call waiting times and the highest stress levels as you wait in the queue.
Leaving yourself plenty of time to do your return reduces the risk of rushing and making mistakes. Filing early should give you time to triple-check your return and correct any errors before submission. You will also have enough time to source any documents you need for your return.
You can be fined for mistakes, so it’s important that your tax return is as accurate as possible. You could be fined up to 30% of what you owe, simply for being careless.