Why should I file my personal tax return early?

Whilst there are many reasons that the self-employed delay filing their tax return until the January deadline, there is more than 1 reason that it may be beneficial to file your tax return sooner rather than later.

Repayment

If you are due a repayment, the sooner that you file the tax return, the sooner you should receive any refund due.

Time to save

Just because you submit the return early, you still have the same payment deadline of 31st January, but knowing what you owe allows you to plan for payment.

Pay your liability via your tax code

When you submit your return before 30th December and owe less than £3,000 you can opt for the tax due to be collected via your tax code. This means you can split the amount due rather than 1 lump sum due in January.

Reduce your payment on account

If you made less profit than the prior year, you may be able to reduce the payment on account due on 31st July, as this is based on the last filed return.

Faster turnaround from your accountant/tax advisor

If an accountant or tax advisor assists you in the preparation of your return, they are likely to be able to turn it around much quicker for you, then getting lost in the crowds in January!

And breathe....

Once filed, you can forget all about your tax return, meaning no stress over Christmas and New Year, and more time to relax with family and friends.

Ultimately the decision is yours, but hopefully you can see there are many benefits to filing your personal tax return as early as possible, before the January deadline.

If you don't want the stress hanging over you, TABF can assist you with the preparation and filing of your tax return, just contact me for more information.