4 reasons why I should Submit my tax return early

If you started your business as a self employed person or as a sole trader or as a partnership you need to register for a self assessment tax return with HMRC latest by 5th October in the second tax year of your business so you can pay your taxes.

At Taxaccolega Chartered Accountants, we offer a range of advice for dealing with taxes for sole traders and start ups, to larger established companies, and we believe that everyone should benefit from submitting their tax returns early. So it’s important to keep the deadlines to submit in mind.

You have to submit your tax return to HMRC latest by

• Midnight of 31 Oct 2022 if you want to submit the paper return.

Or

• Midnight of 31 Jan 2022 if you want to submit the tax return online.

HMRC no longer sends self assessment tax return forms however, you if you want to submit the paper return you can download one from here

Whichever way you choose to submit your tax return online or offline you should not leave it to the last minute. HMRC will accept the completed tax return for the tax year 2021 to 2022 anytime between 6 April 2022 till 31 Jan 2023. There are benefits for submitting the tax return early and few are listed below.

1. Better tax planning

If you plan to submit the tax return early you will be better off in a way that you will have time to budget your tax payments. You can keep the tax money aside aswell.You will also have time to consult your tax advisors and accountants for ways to reduce your taxes by suggesting some reliefs that might apply to your situation.

2. Early refund

Submitting your tax return early doesn’t mean that you have to pay the tax due early as well. Submitting your tax return and paying your tax liability are two different things. However, if you submit your tax return early and you HMRC owes you a refund you will get the refund early and this will make your cash flows look better.

3. Queries will be answered

HMRC helpline is very busy and especially during the times near the tax deadlines. You have to wait for long hours if you want to ask HMRC questions. This adds stress when you don’t understand something about your tax return and only a few hours are left before you can submit the return otherwise you will have to bear penalties if they are not submitted on time. If you start to work on your self assessment tax return early you can have your queries answered and you can fill in the tax return properly, this will give you peace of mind and you won’t be worried that you have over under or over paid which can affect your cash flows.

4. You can include all your expenses

When you plan to do your self assessment tax return early you are more likely to be better organized. When you are more organized you can reduce your tax bill by including all the allowable expenses.

If you need to file your self assessment tax return and you are looking for a tax advisor for professional advice contact Taxaccolega and our team of specialist accountants will be happy to help you.