As you will be aware filing your tax return on time is crucial to avoid penalties, interest charges, and unnecessary stress.
Below is a reminder of the key deadlines you need to be aware of if you file a self-assessment tax return:
Key Deadlines
The tax year in the UK runs from 6 April to 5 April of the following year. If you are submitting your tax return online, the deadline is 31 January following the end of the tax year. For paper returns, the deadline is earlier, on 31 October. Mark these dates on your calendar and set reminders to stay on track.
The benefits of filing early
In addition to avoiding the January rush, filing your tax return in advance of the filing deadline is beneficial to both yourself and your tax advisor. Getting organised early allows time for proper tax planning and fewer surprises later. Though there are numerous benefits to your tax return being filed months in advance of the deadline, there are some benefits of filing early that you may not have considered:
- Planning for tax liabilities
Filing your tax return prior to the filing deadline does not advance the due date for the payment of any tax liabilities. Instead, the payment date of 31 January remains the same regardless of when your tax return is filed. Submitting your tax return prior to January can allow you to save towards your tax bill and account for your tax bill within your monthly outgoings.
Furthermore (if you pay payments on account), if your tax return is filed prior to 31 July, it is possible that your 31 July payment on account can be reduced if it has transpired that your tax liabilities for the year are covered by the payments on account you have already made.
- Allowing your tax advisor to spot planning opportunities
If your tax return is prepared in the January following the end of the tax year, if there are any arrangements that can be made that may reduce your tax liabilities in the current tax year, there are only a few months left in the tax year to put these arrangements in place. This may mean that you are subject to another large tax liability the next following year as your tax advisor will not be able to spot the planning opportunities until the 9th month of the current tax year.
Therefore, submitting your tax return early in the tax year allows your tax advisor to spot planning opportunities early in the tax year and put in potential mitigation steps sooner rather than later.
If you need any assistance submitting your self-assessment tax return please get in touch, we’re here to help you…