26th April 2021
Preparing a self-assessment return is by no means a small beast to tackle, so why not get ahead of it and get it out of the way early? We’ve gathered some compelling reasons why you should.
Beat the rush
Remember when you couldn’t find the password to log in to your account, and you were on hold with HMRC for 50 minutes? Leave yourself enough time to sort out unexpected delays.
Are you sure you have all the records required to prepare the return? A missing P45 or P60 will take some time to replace; you don’t want to leave it to the last minute.
It’s probably a good idea to get an accountant. An expert pair of eyes on your return can spot problems or ask the right questions to save on your tax bill. They will talk to HMRC on your behalf and remind you of payment dates.
If you have an accountant to help you, they will be swamped in January and difficult to get a hold of last minute. It is a lot easier to get answers to your questions before the rush.
Time to save up
A tax return bill received late summer or autumn time is far less painful than one in January. Allow yourself enough time to budget for the bill, especially if you have lots of gifts to buy at Christmas time.
Pay it and forget it. You have the funds to pay the bill now? Perfect, pay it, so you don’t have to worry about the deadline or come up with the funds in January.
Your tax return cannot be completed unless your company’s records are up to date. It is important to remember to allow time for your accountant to prepare your accounts. A cloud accounting software, like FreeAgent, can help greatly with the admin. No more lengthy spreadsheets to prepare or bank statements to e-mail. All MyAccountant clients get an account, and they love using it.
Better for your wallet
This is an obvious one: paying a late filing penalty makes your return more expensive, so why risk it? If you have the records required to complete it, just do it.
As above, hire an accountant as they may be able to save you more money on your tax bill than what they are actually charging you — an instant win. You could be due some tax back, which is even better.
Some accountants (like us) reward you for getting the tax return done early with a tiered pricing system.
We hope that the above has helped prompt you to take action and get the tax return sorted now rather than leaving it to be done at the end of the year.
If you’d like us to help you with your tax return, please contact our tax manager Robert Trappe. If you are already a client of ours, we are likely to have half of the information required to complete your tax return already.