There are so many benefits to starting your self-assessment early. Although it may be tempting to put off your self-assessment tax return, you’d be surprised how quickly time passes. Next thing you know, it’s nearly deadline day, and you’re only halfway through it.
If you’re not convinced, here are some reasons why you should start your self-assessment early.
Balance your time
There’s nothing worse than running against the clock when you already work around it — and your self-assessment tax return isn’t a ten-minute job. Even registering for a self-assessment takes some time.
If you didn’t submit one for the last tax year or have just started self-employment, you’ll need to notify HMRC. Once you register, you’ll have to wait for your unique taxpayer reference number and a pin to log in to HMRC’s online portal.
Once registered, you have to organise your financial reports and file your tax return, which will eat into your time.
You should therefore dedicate admin hours earlier in the tax year to finish it rather than trying to squeeze it into your already busy schedule. The last thing you’ll want is to enter the Christmas season with a self-assessment casting a dark shadow over your head.
Potentially save money
The earlier you start on your self-assessment, the higher the chances are that you can save some money by reducing your tax bill.
Because you’ll have months until the deadline, you can take the time to look into ways to lower your bill by claiming eligible expenses and tax reliefs.
Furthermore, you can also mitigate the risk of incurring late penalties — missing your deadline will result in an automatic £100 fine.
Why risk paying more money to HMRC when you can just start your self-assessment now?
Claim a refund earlier
Naturally, the sooner you submit your self-assessment, the sooner you’ll know how much you owe HMRC. Not only will this help you budget for your tax payment, but you may also find out that HMRC owes you a tax refund.
When you submit your self-assessment out of the peak season, HMRC will process it quickly as it won’t have a long backlog of returns to work through. So filing your return sooner rather than later could result in an early tax refund, if you’re owed one.
You can use your refund to help pay your future tax instalments or even put it away for a rainy day.
Don’t hang around
Although your self-assessment isn’t the most exciting part of your work, it’s essential to get it done accurately and on time. By procrastinating, you’re making a rod for your own back.
The sooner you organise and submit your self-assessment to HMRC, the sooner you can focus solely on your business. Better yet, why not have an accountant do it for you? We help organise and file dozens of self-assessments every year for our clients.
If we can alleviate some of the pressure on your shoulders, we will.
Get in touch to discuss your self-assessment tax return.