The benefits of filing your tax return today

The one good thing about the self-assessment tax return deadline is that it always remains the same – 31st January (when filing online). This means that with the help of your accountant and some organisation from yourself, you can avoid facing the penalties and stress of filing your tax return late or last-minute.

Maintaining easily accessible and up-to-date records of your income and expenses throughout the year, means it will be easier for your tax return to be completed accurately and well before the deadline.

Here we explain why you shouldn’t delay in filing your self-assessment tax return. 

You don't have to pay your tax bill early

Filing your tax return early doesn't mean you have to pay your tax at the same time, you can wait until 31st January. Calculating your tax liabilities and filing your return now will allow you time to start budgeting and managing your cashflow ready to make your tax payment. You can plan for paying any tax you may owe by the deadline of 31st January. 

Pay your tax through your tax code

If you owe less than £3,000 in tax and file your tax return before 30th December you may be able to have your tax liability collected through your tax code. This means your tax will be taken from your salary at source over a period of time and can be a great option to spread the cost and ease the pressure on your cashflow.

Get your tax repayment sooner

Refunds of tax can arise for employees and directors due to issues with tax codes. Also, it is not unusual for building subcontractors operating under the Construction Industry Scheme to receive tax refunds.

The earlier you file your tax return, the sooner any refund will be paid to you. Don't wait until January to file your tax return, you'll be waiting longer for your refund and missing out on bank interest while the money sits in your bank account.

Avoid penalties and late filing interest

If you delay in filing your tax return, you risk missing the deadline and facing an automatic £100 filing penalty, no matter how much tax you had outstanding. If your tax return becomes more than three months late, £10 daily penalties will start building up until they hit a £900 peak. 

Should your tax return become more than six months late, then a penalty of the higher of £300 or 5% of your tax due will be charged. The same level of penalty is applied again if the return becomes over 12 months late. All of these penalties are in addition to one another, and as a result of this the penalties for a late tax return could hit more than £1,600. 

Give yourself plenty of time to prepare your tax return

If your financial affairs changed this year, then putting them in order sooner rather than later will give you the time to think about any tax planning opportunities available to you. Apps like Dext make it much easier to keep track of all those bits of paper that build up over the months. Speeding through your tax return at the last minute increases the risk of mistakes being made. Giving you and your accountant time means your tax return will be correct and complete.

For more benefits take a look at our detailed benefits of filing your tax return early guide.

We can help file your tax return

Tax has become an ever-changing and increasingly complex field and unless you have expert knowledge, you may be left bewildered and miss out on all the reliefs you are eligible for. Without the help of an advisor, you could end up paying too much tax without realising, or accidently pay too little and risk an investigation.

So why wait, call us today on 0800 0523 555 or use our simple online enquiry form and beat the deadline, be safe in the knowledge that you can be relaxed about your tax.

Date published 17 Aug 2018 | Last updated 8 Oct 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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