Do you always leave filing your tax return until the last minute? You really shouldn’t. Here’s why:
- Receive your tax refund earlier
Most businesses had a tough 2020. You may have noticed things weren’t really normal for a while there. If your business income was down, chances are so was your personal income. This could mean that your in-year payments were too high and you might be entitled to a repayment. Filing early will ensure this lands in your pocket as quickly as possible.
- Reduce your July 2021 payment on account
Similarly, being an early filer will mean that you will have certainty over how much you need to pay at the end of July. If your return hasn’t been filed, HMRC estimates this payment based on last years’ figures, which could be much higher, putting an unnecessary dent in your cashflow.
- Budget for your tax bill
Regardless of when you file, your tax bill is due on 31st January of the following year. So, if you submit your return in May, you’ll have eight months to provide for the payment due. If you file at the end of January you’ll have days. If your liability is a few grand, you’ll want as long as possible to prepare for it.
- Have records available for mortgage references
Most brokers and lenders now require, in addition to an accountant’s certificate, proof of your income from HMRC. You are invariably asked to provide your most recent tax statements. If these are out of date, then this could lead to a mad scramble to get these done. Moving house is stressful enough without needlessly adding to it.
- Identify opportunities to save tax earlier
The quicker you prepare your tax return, the quicker we can identify tax saving opportunities for the future. If you can implement a tax saving measure in April, rather than December, then this can only be a good thing, right?
If you want to file earlier, and your current accountant is the roadblock to this, the next step is to book a call with an Acumenica accountant so we can find out a little more about your business and how we can help you. Definitely no hard sell and no obligation.
Visit our Contact Page to get in touch.