It is of course so easy to put off your self-assessment tax return until later, perhaps even the last minute. However there are significant benefits to getting it done early and ensuring your tax affairs are up to date.
Find out your Personal Tax Liability
By filing your tax return earlier, you will have the benefit of knowing your liability earlier. This will allow you to claim your allowable tax reliefs as soon as possible as well as giving yourself more time to budget for payment of tax owed. It may even be possible for tax owed (up to £3,000) to be collected through your salary or pension.
You will also avoid the risk of HMRC interest and penalties if you miss the final deadline.
Receive an Earlier Repayment if one is due
If you are fortunate enough to be due a repayment, then why not benefit from having it in your account earlier. It could be particularly useful for your cashflow, particularly in today’s economic climate.
Stress free Christmas
Save yourself the stress of filing your return at the end of the year. Most of us would rather put off completing their tax return but you might just be glad of one less worry when the Christmas rush approaches.
Better Prepared for the Unknown
From a pandemic to political and financial instability at an international level, if the last few years have demonstrated one thing, it is the power of the unknown. If you wait until the last minute to file your self assessment tax return, unknown factors such as illness, mislaid information or disruptive weather could add additional stress. Dealing with your tax affairs ahead of time avoids the headache of missed deadlines and HMRC interest and penalties.
Find out how Kingston Burrowes can help with your self-assessment tax return today.