Your tax return for 18/19 needs to be filed by 31 January 2020, but can be done NOW.
Here are 10 great reasons to get it out of the way before the heatwave arrives (OK – wishful thinking, but you never know)
It’s done- hooray!!!! Enjoy Christmas and find something else to moan about in January. Peace of mind is a wonderful thing.
You will know now what your tax bill is for the year. Filing your return early does not mean that the tax is due any earlier, so the tax for 18/19 is due at 31 January 2020 whenever you file your return. Knowing what that figure is now gives you plenty of time to make sure the money is put aside.
- Get your refund due sooner
Although the tax payment date does not change from 31 January, if you have actually overpaid tax for 18/19, then as soon as your return is filed and processed, the repayment will be sent out to you. The earlier you file your return, the quicker you get any money back!
- Confirming your 31 July 2019 payment
For some people, payments on account of tax have to be made in the year, at 31 July. The amount that is due is initially calculated from the year before’s tax liability and is really therefore an estimate. If your total income is lower in this tax year, you can make a claim to reduce this payment on account at 31 July, to ensure that you don’t over pay tax. Submitting your tax return before 31 July will ensure the tax man doesn’t take too much of your hard earned cash.
- Tax credits
The renewals forms have to be completed by 31 July, and being able to produce accurate figures will ensure your claim is accurate for the year, and you won’t end up having to repay amounts you were not entitled to.
- Tax code adjustments
If you pay any tax owed by an adjustment to your tax code, so it is taken from your monthly pay, then you want this code to be correct. Having the correct code early in the tax year will avoid large adjustments at the end of the tax year, which could impact significantly on your pay packet.
- Access to information
We all know its going to be easier to find the information you need soon after you receive it, rather than in January, when you realise your filing may not be quite as good as you thought!
- Memory issues
If you are producing accounts for your business, you are much more likely to know the answers to your accountant’s tricky questions now, rather than 6 months down the line! What was £x for again in Nov 2018????
- Lower accountant’s fees and no fines
Many accountants will increase their prices as the filing deadline approaches, as good old supply and demand comes into play. Working weekends and into the wee small hours all through January is expensive! Returns not filed by 31 January have an automatic £100 late filing penalty – so don’t run the risk! HMRC don’t really care about computer problems, lost post, bad weather, Winter colds – if your return is late, expect a fine.
- Happier, healthier accountants – see point 9!! January is depressing enough for most people, but when you still have a whole pile of tax returns to chase up and get filed, dry January just ain’t going to happen!!
So if you are inspired to get your return done early this year and need some help, then please do get in touch. You can contact us here at email@example.com