8 reasons to file your self-assessment early

8 reasons to file your self-assessment early

Raise your hands if you agree… Do you look forward to tax season or do you procrastinate until the deadline is right in front of you?
We understand that submitting your Self-Assessment Tax Return isn’t your ideal job. However, we’ve compiled a list of eight compelling reasons why you should submit it as soon as possible. Take a look, it will cheer you up…

1. Are you signed up?: It may take some time to figure this out if you aren’t. To register with HMRC, you must first apply online, and then an activation number will be mailed to you. All of this will take at least 7 working days to accomplish, so don’t put it off until the last minute or you’ll miss the deadline before you’ve even begun.
2. It takes time to gather all the data: So why go through the agony of hunting for bills, invoices, receipts, interest statements, P60s, and other documents at the last minute? People requiring access to previous bank statements and having to wait for the bank to transmit these through is a common problem we notice. Make a list of everything you’ll need and start putting it together right away. Nothing will be overlooked, you will be less concerned, and you will be able to maximise any tax relief claims.
3. Some people are fortunate enough to receive a tax refund: Although we don’t know everyone, circumstances do change, and you may be eligible for a tax return. Why should it be in HMRC’s pocket when it could be in yours instead?
4. Use your tax code to your advantage: If you owe less than £3,000 in tax and have a PAYE tax code, HMRC will enable you to settle your tax debt via a tax code adjustment rather than paying your tax in one lump sum if you submit before December 30th. What a great way to boost your income, and it could just happen in time for the holidays.
5. Stay Away from Penalties: The penalty scheme for late submission of Self-Assessment Tax Returns is rather harsh, with fines starting at £100 for missing the January 31st deadline. HMRC will impose fines not just for failing to file your return on time, but also for paying your tax after the 31st of January. The bigger the penalty, the longer you wait after the deadline, therefore it’s best not to go there.
6. Every January, the HMRC phone lines are overburdened: They don’t have excellent taste in music, so why would you want to wait at least 10 minutes on hold to speak to an expert, listening to the same track repeatedly, when calling HMRC is a lot simpler in the months before?
7. Have a wonderful Christmas season: Give yourself the gift of not having this nagging thought in the back of your mind as the holidays approach, and instead go into them with a clean conscience:
   1. You’re certain that your tax return is in good hands.
   2. You’re aware of how much you owe and when you must pay it.
   3. You’ve gotten away with it.
   4. When others moan about their tax return after Christmas, you might feel arrogant, and…
8. January: This is usually a difficult month for most of us, so make it your mission to beat the January blues and get this over with.

To get started, schedule a conversation with us to learn more about our services and to see how much tax you might be saving.