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Benefits of Early Filing of Self-Assessment Returns

Updated: Feb 3


Introduction

The 31st Of January is a date that many taxpayers dread Self-Assessment tax return. With Christmas coming it's easy to put off the task of filing your return until the last minute. However, there are several compelling reasons why you should consider submitting your Self-Assessment returns earlier. In this article, we will explore the benefits of early filing and why it can be a smart financial move.


Avoid Rush

The end of January is notorious for being a busy period for both individuals and tax professionals. Waiting until the last minute to file your Self-Assessment return can lead to technical issues on the HMRC website, long wait times on customer support helplines, and stress as you scramble to gather the necessary documents. Filing your return early allows you to beat the rush and reduces the chances of running into these common issues.


Time to Correct Errors

When you file your Self-Assessment return early, you have ample time to review your submission for any errors or omissions. Mistakes on your return can lead to fines and penalties, so giving yourself extra time to double-check the information is crucial. If you discover any errors, you can rectify them well before the deadline, reducing the chances of financial penalties.


Improved Financial Planning

Filing your Self-Assessment return early provides you with a clear picture of your tax liabilities for the year. This early awareness allows for better financial planning. You can accurately budget for your tax bill, ensuring you have sufficient funds available when it's time to pay. This proactive approach can help you avoid last-minute financial stress.


Eligibility for Tax Refunds

By filing early, you might be eligible for a tax refund sooner. If you've overpaid your taxes throughout the year, submitting your return early could possibly allow you to claim your refund earlier. This can be particularly beneficial if you have pressing financial needs or investment opportunities that require those funds.


Peace of Mind

There's a certain peace of mind that comes with completing your Self-Assessment return well ahead of the deadline. You won't have to worry about it hanging over your head, and you can enjoy the rest of the year with the knowledge that your taxes are sorted. This can reduce stress and improve your overall well-being.


Avoiding Penalties and Interest

One of the most important reasons to file your Self-Assessment return early is to avoid penalties and interest charges. HMRC can impose substantial fines for late or inaccurate submissions. By submitting your return ahead of the deadline, you reduce the risk of incurring these costly penalties.


Extra Time for Professional Advice

If you use a tax professional to help with your Self-Assessment return, submitting it early gives them more time to review your financial situation thoroughly. They can offer valuable advice on tax planning, deductions, and credits that you might be eligible for, potentially saving you money.


Conclusion


Filing your Self-Assessment return early is a smart move for various reasons. It allows you to avoid the last-minute rush, correct errors, and engage in better financial planning. You could even also access any potential tax refunds sooner and enjoy increased peace of mind. Most importantly, early filing helps you avoid penalties and interest charges.


In conclusion, making the effort to submit your Self-Assessment return well before the January deadline is a responsible financial decision that can have a positive impact on your overall financial well-being. Ideal immediately after the month of April or one month after your business financial year end. Start early and experience the numerous benefits of timely tax return filing.


Lucricious Accounatnts, Accountants & Tax Advisers for Small Businesses


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