This week HMRC will write to millions of people requesting they complete a 2014 Tax Return. However, we are a nation of procrastinators and many of us will not deal with our self assessment tax return early – whether we are doing them personally or getting the information to our accountants we will leave it until close to the filing deadline on 31 January 2015. However, there are some good reasons to do it sooner:
1. It won’t result in tax payable sooner. Tax payable will be due in January and July as normal regardless of when you file your return.
2.If you have tax to pay you will know exactly how much you owe and when. This means you can either put money aside now or at least plan for how you will save up to pay it. No unexpected last minute surprises.
3. If you are due a tax refund you’ll get it sooner. Refunds typically get repaid within a few weeks of when you file your Tax Return. Why let HMRC hang on to your precious money for months longer than necessary?
4. If you want a tax underpayment collected via PAYE you have to file your Tax Return before 31 December. January is too late.
5. HMRC have 12 months from the date you file your Tax Return to ask any questions about the return. The sooner it is filed the quicker this enquiry period is closed.
6. Less time to lose all those essential bits of paper
7. You will have months of feeling smug instead of feeling depressed that it is still on your to do list
8. Your accountant will love you. People who send us their info in January are not the popular clients!
So, why not be different this year. File your tax return early for a change!