THE BENEFITS OF SUBMITTING YOUR TAX RETURNS EARLY
Tax returns are no doubt one of those things people tend to put off until the last minute and according to The Crunch, in 2018, nearly a quarter of persons due to file their tax returns had not done so by the 29th of January, two days before the deadline. Therefore it comes as no surprise that deadline day records the most activity from persons looking to file their tax returns. It also comes as no surprise then that HMRC rakes in millions in fines from sanctions.
Considering the stress and possible fines which results from not filing early, it leads to one inevitable conclusion: file early. Well if you are still not convinced about filing early, let’s take a look at what you stand to gain by doing so.
- YOU ARE BETTER ABLE TO MANAGE YOUR CASH FLOW
When you complete your tax return on time, you learn what tax liability arise from it and get more time to set funds aside to cover your tax bill and better manage your cash flow.
If you file late, you will find that you may not be able to pay the amount due to HMRC, and this is where you begin to run the risk of late payment penalties.
- YOUR TAX REFUNDS COME EARLY
If you have a repayment due, it’s to your advantage to get your self-assessment done early. By this time, HMRC not as occupied processing returns so you would get any refund soon after submission.
- YOU AVOID MISTAKES
There are no benefits to waiting until the last minute before submitting your tax returns and plenty from submitting early, one of which is you can go through the document as many times as possible, ensuring there are no mistakes. Working last minute would see you scrambling around for receipts to put the financial information together.
Also, if your tax circumstances have changed of late, preparing your tax returns early enough will give you time to seek accounting advice and make any tax plans.
- YOU’LL AVOID PENALTIES
Filing your tax returns early gives you time to address any issues arising from your financial document and helps you avoid HMRC’s late filing penalties like the £100 penalty you incur when you miss the January 31st deadline.