At Blue Water Accounts, we have experienced that many people do not pay due attention to their self-assessment tax return and postpone completing this until closer to the deadline. According to our expert self-assessment accountants, completing a tax return earlier brings numerous benefits. Carefully read this blog and make sure that your tax-related affairs are up-to-date. This blog talks about some key advantages of completing your self-assessment tax return earlier.
Be aware of your liability
First of all, you need to be aware of your liability for submitting your tax return information. It is essential to know all your tax liabilities, and timely awareness will ultimately benefit you. Claiming all tax reliefs you are allowed as early as possible will enable you to avoid panics of the eleventh hour because HMRC may charge you fines or penalties.
Remember that it may be possible that the authorities would collect up to £3,000 through your wage or pension.
It would help if you give yourself time to budget for payment or contact HMRC to set up an early payment arrangement if required. Submitting your return early does not mean you will have to pay tax earlier.
Receive your repayment
If you are liable for a tax repayment, you will need to submit your return as early as possible. This approach will benefit you, as you will get the repayment quickly. An early approach to tax return could prove to be principally beneficial for cash flow over the summer period.
Enough time for tax planning
If you prepare your return on time when it is payable, you will have more time to pay attention to any tax planning opportunities. You can implement the plan in a timely manner for the subsequent tax year.
Easily apply for and get a mortgage
If buying a house or re-mortgaging your existing property is on your planning list, you will have to obey the rule. You will need first to establish your income. For this, providing a document “SA302 and HMRC Tax Year Overview” is inevitable in the UK. Submission of these documents will help you reveal the real income you have declared to HMRC. The lenders will then have all the necessary information, and they will then progress your mortgage application.
In addition, this will relate to other finance forms, including academic finance, car leasing, and universal credit.
One job done
As mentioned earlier, you may find many who do not complete their tax return on time and face issues later.
Remember that HMRC may open an enquiry, and the authority has one year (12 months) from the date they collect a tax return to do this. So, if you submit your returns earlier, you can avoid penalties. Be aware of both random and targeted tax investigations. So, protect yourself by benefiting from our professional self-assessment tax return accountant.
If you frequently ignore and do not submit information related to tax returns until the deadline is knocking on the door, you may develop stress from missed deadlines due to ill health, bad weather conditions, and others. So, be prepared and well-organised while coping with your tax affairs. Ultimately, you will avoid the stress and headache of missed deadlines and fines imposed by HMRC.
Hire Our Expert Self-Assessment Accountant
If you have more questions you need to ask us, you can discuss them with our specialist self-assessment accountant in the UK. We will arrange a free consultation for you. Turn to Blue Water Accounts right now, submit your tax returns earlier, and avoid HMRC penalties.