Four important reasons you should consider completing your tax return early27/07/2023
Almost everyone can understand waiting to the last minute. After all, why should you rush to do something when you have plenty of time left to do it? Sometimes, it is important to wait and do things at a later date. However, completing your tax return is not one of those things. The deadline for filing your tax return is the 31st of January, after the conclusion of the fiscal year. But there are at least four compelling reasons you should consider completing it sooner.
1. Preparing for your tax responsibilities
By submitting your tax return early, you may determine your tax liabilities well in advance. You can organise your finances better if you know how much you owe to HM Revenue and Customs (HMRC) early on. Understanding your tax liabilities early on helps you to budget for the payment or, if necessary, investigate solutions such as putting up a payment plan. This proactive strategy assists in avoiding financial shocks and potential cash flow issues.
2. Preventing last-minute stress
Preparing your tax return ahead of time reduces the tension and anxiety that typically accompany the approaching deadline. By starting the process early, you will have enough time to acquire all of the essential paperwork, analyse your financial records, and seek advice if necessary. Procrastination might result in hurried and error-prone submissions, increasing the likelihood of errors or missing critical information.
3. Making sure you have access to all the help you need
Tax accountants are in great demand as the conclusion of the fiscal year approaches. You have a higher chance of acquiring the services of an accountant if you begin your tax return early. Waiting until the last minute may result in restricted availability or higher accounting costs owing to increased effort. Seeking expert advice early on can assist assure accuracy and reduce the chance of costly mistakes.
4. Benefiting from quicker refunds
If you are eligible for a tax refund, filing your return early assures that any tax owed to you is paid quickly. Early filers often receive speedier refund processing, allowing you to access the monies you are entitled sooner. Early refunds are especially useful if you have financial obligations or investments lined up, since they allow you to use the cash more efficiently.
If you need any help completing your tax return, or you want to discuss it with the experts, call JW Hinks’ tax team on 0121 456 0190. We can help you make sure that you remain compliant with HMRC’s guidelines while not paying more tax than you need to.