Leaving your self-assessment until the last minute can be extremely stressful. By planning ahead this year, you can help eliminate stress and become more organised.
Over the next few weeks, many business owners will be receiving their self-assessments via post. Even though it can be extremely tempting to put this letter to one side, it is better to get onto it straight away so that you don’t have to worry about it later on in the year.
Here are 6 reasons to complete self-assessments early:
Having A Relaxed Christmas
Many of us enjoy Christmas, making this a popular reason to want to finish your self-assessments before the deadline of January 31st. Everyone should be able to enjoy Christmas with family and friends and not be glued to the computer, trying to figure out taxes!
Rushing Can Cause Mistakes
As with anything, if you rush it, you are more likely to make mistakes. Rushing something important can be critical. If you make a mistake in your tax return, you may end up having to pay a fine from HMRC. If you are prepared and make steady progress on your self-assessment, you will have an opportunity to work properly without making as many mistakes. You will also have time to go through it t the end to correct any mistakes before submitting it.
Claiming Your Tax Refund
You could discover that you’re due a tax refund. The earlier you file your tax return, the earlier you can claim your tax refund. HMRC will not be dealing with as many returns if you submit them early.
The longer you leave your self-assessments, the chance of you losing or misplacing receipts increases. Not only that, but the longer you leave it, the more receipts you will have to look through. Don’t forget that you’ll need receipts to complete the tax return correctly and work out the expenses/spending. By keeping your bookkeeping up to date, you can make it much easier for yourself.
If you miss the deadline date, you will find that you’ll face an immediate penalty. They start off at £100 for filing within 3 months after the deadline and increase for anything after that time. To avoid these penalties, submit your self-assessment tax return early.
Make Your Accountant Happy
For accountants, January is always extremely busy due to a large number of people leaving their assessments to the last minute. Accountants who help business owners complete their returns in January often increase their fees to help with the rush. However, accountants help those who want to get ahead and avoid the rush throughout the year.
If you’d like any advice when it comes to your completing a self-assessment tax return, contact us today.