Client stress levels have a habit of rising as the Self-Assessment tax return deadline gets closer.
Filing your return early can alleviate this stress and offer several other benefits.
Here are three compelling reasons to submit your tax return sooner rather than later:
Prevent stress
Filing your tax return early can greatly reduce the stress associated with meeting the deadline.
This is because you are allowing yourself plenty of time to review your documentation, ensure accuracy, and seek professional advice from your accountant.
This preparation time is invaluable, especially if your financial situation is complex or you encounter unexpected issues.
Rushing to compile and submit your financial information at the last minute is only going to increase the likelihood of errors and omissions, potentially leading to penalties and additional scrutiny from HM Revenue & Customs (HMRC).
Improve your financial planning
Submitting your tax return early provides a clearer picture of your financial situation for the year.
This information is essential for effective financial planning and decision-making. Understanding your tax liabilities ahead of time allows you to manage your cash flow and make more informed choices about investments, savings, and expenses.
Filing early also helps you identify potential tax savings opportunities, such as allowable deductions and reliefs, which without that extra time, you might otherwise miss.
Faster refunds and few penalties
Submitting your tax return early not only guarantees a quicker receipt of any tax refund owed to you but also enhances your cash flow.
Prompt refunds can be especially beneficial for reinvesting in your business or handling personal finances efficiently.
On the other hand, if you owe taxes, filing early provides you with extra time to arrange a payment plan with HMRC, minimising the risk of incurring late payment penalties and interest fees.
Early filing diminishes the likelihood of missing the deadline and facing automatic late filing penalties, which could unnecessarily strain your finances.
The bottom line
To fully benefit from the points made above, speak to your accountant about preparing your tax return well in advance of the deadline.
If you need help with your tax return, please get in touch with one of our team.
