6 advantages of completing your tax return early…
Filing your tax return on time is crucial, but did you know that submitting it early can bring you even more benefits? By completing your tax return before the deadline, you can enjoy the following positive advantages:
1. GET YOUR TAX REFUND QUICKER
If you have paid too much tax throughout the previous year, filing your self-assessment tax return early allows you to receive your tax refund sooner. After submitting your return, you can expect to be notified about any overpaid tax within a few weeks. The actual refund process typically takes up to 8 weeks, depending on various factors such as your location and the workload of the local tax office. By filing early, you can avoid the queues of people waiting for refunds in January and enjoy the excitement of receiving your money back sooner. This provides you with an opportunity to use the funds for important expenses, treat yourself, or even put them into savings for future goals.
2. BUDGET FOR YOUR BILLS
Once you have calculated and submitted your tax return, you will know the exact amount you need to pay to settle your tax bill. This early knowledge gives you more time to save up for the payment, which is due on January 31st. It’s important to note that HMRC charges interest on late tax payments, starting from 5% of the amount owed. By completing your tax return early, you can avoid any last-minute surprises and ensure that you have the funds available to pay your bill on time. Additionally, if your tax bill is less than £3,000 and you file your tax return by December 30th, you can opt to have the liability collected through your tax code on any PAYE income you may have. This convenient option allows your tax to be automatically deducted from your salary or pension, providing you with peace of mind and eliminating any worries about payment.
3. ENJOY PEACE OF MIND
The self-assessment tax return deadline falls at the end of January, right after the festive season. Many people tend to put off their tax return until the last minute, leading to unnecessary stress and anxiety. Instead of carrying that burden, why not tackle your tax return earlier in the tax year? By completing it sooner, you can relax, knowing that it’s all sorted, and focus on enjoying your time without the nagging feeling of an impending deadline. Starting the new year with your tax return already taken care of allows you to embrace a fresh start, free from worries about outstanding financial responsibilities. It enables you to enter the year with a positive mindset, ready to pursue your goals and aspirations with clarity and enthusiasm.
4. AVOID COSTLY MISTAKES AND ALLOW FOR CORRECTIONS
Rushing to complete your tax return at the last minute increases the likelihood of errors. When you are under time pressure, it’s easy to overlook details or make miscalculations. However, by filing early, you give yourself ample time to review your return, double-check figures, and correct any mistakes before they escalate into costly consequences. Taking a methodical and unhurried approach allows you to pay attention to every detail and ensure the accuracy of your tax return. This not only saves you from potential penalties but also gives you confidence in the integrity of your financial records. It’s a positive feeling to know that your tax return has been completed accurately, reflecting your true financial situation and supporting your financial well-being.
5. GIVE YOURSELF SUFFICIENT TIME
Handling your taxes should not be a last-minute scramble. While filing a tax return does take time, most of that time is usually spent gathering and organising the necessary documents. By starting early, you can allocate more time to sort through these documents, ensuring that you have everything you need to complete your return accurately. This proactive approach saves you from the stress of searching for misplaced receipts or important paperwork when the deadline is looming. It allows you to create a systematic process, organise your financial records effectively, and gather any additional documentation required well in advance. By dedicating sufficient time to your tax return, you empower yourself to approach the task with ease and positivity, knowing that you have all the necessary information readily available.
6. FIND THE RIGHT ACCOUNTANT
If you are considering hiring a professional accountant to assist you with your self-assessment tax return, it’s crucial to view it as an opportunity to find the right fit for your needs. By starting the search early, you give yourself enough time to thoroughly research and compare different professionals. You can read reviews, ask for recommendations, and schedule consultations to discuss your needs and expectations. This extra time allows you to find an accountant who not only has the necessary expertise but also aligns with your communication style and understands your specific financial situation. Working with the right accountant can provide you with a sense of confidence and trust, knowing that your tax return is in capable hands. It opens doors to valuable insights, potential tax-saving opportunities, and personalised guidance that can positively impact your financial well-being.
We hope these advantages inspire you to file your tax return early and experience the positive impact it can have on your finances and peace of mind. By taking a proactive approach to your taxes, you can unlock these benefits and set yourself up for a smoother and more rewarding tax season. If you found this post helpful, please leave a comment below. We would love to hear from you!