The self-assessment tax return for tax year ended 05 April 2022 is due to submit online by 31 January 2023 to avoid late filling penalties. However, submitting the return well in advance could get several benefits including saving your time and money. In this article, we will mention the key benefits of being self-assessment early bird.
Key Benefits of Being Self-Assessment Early Bird
- Time to arrange finance: Doing early self-assessment means you know how much tax is due to pay and then you have more time to manage the finance to pay your tax bills on time. You know that late tax payment is subject to interest and penalty charges by HMRC.
- Claiming tax refund sooner: If you have any repayment available from HMRC once you have submitted your tax return, you can claim early repayment and then able to manage your finance smoothly.
- Right information ready for mortgage: If you have plan to buy a property and want to get mortgage or mortgaging your current property, the lender will look for your present circumstances with right information. Doing the early tax return submission means your information is ready for the lender to get sorted your mortgage.
- No stress for first time: If you are doing the first tax filing means you may not quite familiar with self-assessment tax affairs. Therefore, plan for early tax return will give you more time to submit the tax return without any stress. There is a great chance of missing the deadline if you are waiting for the last minute.
- Time to find your tax accountants: Self-assessment tax return is not always straightforward and easy to submit to HMRC, specifically if you have complex scenarios or new in self-assessment tax matters. Waiting for the last minute means you may not be able to find your suitable and trusted tax accountants that you are looking for.
- Escaping any mistakes: Once you have more time in your hands, you can gather the required documents and information as you need for your tax return. Moreover, you can review your tax return and computation precisely before submitting to HMRC. As you know that submitting the incorrect tax return could lead to penalty charges by HMRC.
- Avoiding late filing penalties: HMRC imposes late filing fines if you are failure to submit the return on time. The fine starts from £100 and then will be more if you are late for longer.
- Avoiding January madness: Almost all accountants are usually busy during the January time and if you are waiting for last minute means you will not get your desire services. Moreover, Contacting HMRC in January involves a long wait. To avoid the January madness, you can consider submitting your tax return earlier.
Disclaimer: The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.