7 Reasons Why You Should Do Your Tax Return In Good Time
Earlier this year HMRC announced that over 10 million people filed their 2017 tax return on time before the 31 January 2018 deadline, exceeding their prior record. More than 92.5% of those tax returns were completed online, and over 750,000 were filed on the last day before the deadline. We’ve even heard of taxpayers forgetting to actually ‘submit’ their return, despite preparing it on time. We believe you are more likely to make a mistake or miss claiming all relief due if you are up against the clock. We therefore encourage our clients to file their tax returns well in advance of the filing deadline, and here are our seven key reasons why you should get your tax return prepared and filed sooner rather than later;
1. If your tax liability is less than £3,000, and your return is filed before 30 December then the tax due can be included in your 2019/20 tax code and collected from your employment/pension income.
2. If you are entitled to a tax refund you will receive it more quickly. We recommend providing your bank details so that any refund due can be repaid to you quicker than HMRC sending a cheque.
3. If you have tax to pay, it gives you more time to prepare for the liability so you can raise funds in time, or finance should you need to.
4. You will avoid late filing penalties, which start from £100 rising to £10 per day after three months.
5. The HMRC enquiry window commences 12 months from the date your tax return is filed so there is no benefit to delaying. We often see enquiries launched on tax returns filed last minute.
6. You have plenty of time to collate any additional information if anything is missing or needs further review or analysis.
7. We can process your information more quickly and you can have a stress free Christmas knowing your tax return has been taken care of in good time.
If you need any help with your tax return, please do get in touch.