The HMRC emphasises the significance of early filing for tax returns. This recommendation, while not mandatory, offers several advantages for business owners and the self-employed.
Why Should You Consider Filing Early?
Understanding Your Tax Obligations
By preparing tax returns early in the tax year, you won’t accelerate the payment date. However, you’ll have clarity on what your tax bill will be, well before the payment deadline of 31 January 2024. This insight can be invaluable for financial planning and budgeting.
Avoiding Last-Minute Stress
Procrastinating on your tax return can lead to last-minute hassles. Filing early ensures you avoid the stress of the eleventh-hour rush and potential errors that can arise from hurried submissions.
Utilising HMRC’s Budget Payment Plan
If you’re concerned about managing the cost of your tax bill, HMRC offers a Budget Payment Plan. This allows you to spread the cost of your tax bill, making it more affordable and manageable.
Speeding Up Tax Repayments
If you’ve overpaid your taxes, filing your tax return early can expedite the repayment process. This means you can receive any owed rebates instantly, improving your cash flow.
Staying Ahead of Deadlines
The 31 January 2024 deadline is crucial. Not only is it the final date for the submission of the 2022-23 Self-Assessment tax return, but it’s also the last day for payment of any remaining tax due for that year. Additionally, this date marks the due time for the first payment on account for 2023-24. By filing early, you ensure you’re well-prepared for these deadlines.
Peace of Mind
One of the intangible benefits of early filing is the peace of mind it offers. Knowing you’ve taken care of your tax obligations allows you to focus on other aspects of your business and personal life.
For business owners and the self-employed, the recommendation from HMRC to file tax returns early is sound advice. Not only does it offer financial benefits, but it also ensures you remain compliant, avoiding potential penalties. Remember, calculating your tax and filing the return are two separate processes. Ensure you complete both steps and make any necessary payments by the 31 January 2024 deadline.
Seek Expert Guidance
Navigating the complexities of tax returns can be challenging. At AIT Accountants, our team of tax experts is here to guide you every step of the way. If you have questions or need assistance with your tax preparations, don’t hesitate to reach out. Contact AIT Accountants today for personalised tax advice and solutions.