22 Jan It’s Tax Return Season – 5 reasons to avoid the rush
Paula Tomlinson, managing director of On The Spot Tax Accountants based in Sussex, has some advice for those who leave completing their tax returns until the last moment. As the financial year-end for most people looms, Paula says some always put the job off because it’s not exciting, they’re not organised, or they’d simply prefer to be doing something – anything – else.
“Hands up those who have hundreds of receipts in a big box and have been telling yourselves to knuckle down and do it for the last few months!” says Paula. “Well, they won’t just go away by themselves. It’s far better to keep on top of your accounts and avoid having your tax return hanging over you like the sword of Damocles! There are some very sound reasons why I recommend getting your tax return in quickly.”
Here are Paula’s five reasons to get next year’s return in as soon as you can:
1 – You may be due a tax refund
If so, don’t you want that cash in your account rather than HMRC’s? Refunds do occur quite often.
If you’re a start-up sole trader still working in a PAYE job or you had a PAYE job in the previous few years, you may be able to claim a tax refund for the PAYE income tax you’ve paid.
Even for employees, your tax code may have been wrong, you may have further tax to claim on pension contributions or you paid more charitable donations, than the year before.
2 – Certainty
If HMRC need to ask questions, they have 12 months from the date you file the return. So, if you submit it on 6 April 2019, HMRC must ask questions by 5 April 2020.
Firstly, HMRC is likely to regard an early filing as a good thing. Secondly, they need to be very organised to get their notice to you that early in the tax calendar. And thirdly, you have more certainty that your tax bill is agreed.
3 – Quality
With more time far away from a deadline, the job isn’t rushed and less errors are likely to arise.
4 – Be proactive
More time also allows you and your accountant to review your tax position, discuss your business and your future plans, and take action at the beginning of the next tax year in good time and with proper consideration.
All in all, less stress.
5 – Smile
You can fully enjoy Christmas and the New Year without your tax return hanging over you!
At Paula’s company On The Spot Tax Accountants, they work with clients throughout the year to get to know their business inside out and show them how to keep records up-to-date to avoid the end-of-year panic.
If you’d like this approach to the wonderful world of tax and accounting, call for a free initial chat with Paula Tomlinson, our MD on 07717 854333 or 01444 882677, or see www.onthespottax.co.uk