Why should you file your tax return early?

There are many myths surrounding the reasons why individuals believe that filing  their tax return early will in some way disadvantage them as a tax payer.  This is indeed a myth, and it’s generally in everyone’s interest for the return to be filed as soon as it reasonably can be.  Some of the advantages of filing early are:

·       You know sooner the amount of tax that is due to be paid you can budget for bills better.

·       If you’re due a rebate, you’ll receive this sooner.

·       It allows more time to (i) avoid and (ii) correct mistakes.

·       It avoids the ‘time bomb’ associated with leaving things until the last minute and the panic and stress as the deadline approaches.

·       It means you won’t miss out on securing a mortgage or loan because your affairs aren’t up to date.

·       It allows you more time to implement any tax strategies.

·       You’ll avoid any late filing penalties.

·       If you do need to speak to HMRC about your return, you’ll be able to reach them without long waiting times in a queue.

You can see from this list alone that there are many advantages to filing in good time and not delaying this unduly.

A common misconception is:  my earnings are higher this year than previously – I’ll have to pay my tax earlier than I would if I leave it until the last minute.  This is simply not true in nearly all circumstances; in fact, instead, it allows more time to budget correctly.

We have assisted many clients with the filing of their tax returns and the upshot has generally been that the client themselves and their accountants find the whole process less stressful where matters are dealt with in a timely fashion and are not a last minute rush. 

If you would like to discuss this further, and how we might be able to assist you with your tax return, please feel free to contact us for a further discussion:  please email hello@sphereaccountants.co.uk or call 01298 211535.