Everyone knows their Self Assessment Tax Return needs doing, but many put it off repeatedly hoping that somehow it will do itself. Eventually, January rolls around and procrastinators scramble to complete and file it. In 2015, nearly 900,000 British taxpayers missed the 31 January deadline and paid the fines (with extra penalties for exceptionally late returns). Apart from avoiding those hundreds of pounds in fines, there are quite a number of logical reasons to file tax return early.
An Early Tax Refund
HM Revenue & Customs (HMRC) does not wait until the deadline to pay back tax owed to taxpayers. If they owe tax, they pay for it shortly after they receive and process the tax return. Accountancy & Task Advisers Ltd agree that filing an early tax return, therefore, makes sense especially for individuals who overpaid their tax, as it means receiving the return as soon as possible.
Better Money Management
The natural thing to do when facing a tax bill instead of a refund is to delay submitting the return as much as possible. Working out the liability early on, however, will help a taxpayer know exactly how much they will have to pay and make a plan to start saving for the right amount. This ensures an organised cash flow and no horrible surprises.
Peace of Mind
Spending the most festive season of the year with nagging thoughts of the deadline is absolutely irritating. Taxpayers, therefore, must file the tax return early and avoid procrastination. Imagine a December with tax return done and dusted, paperwork in order and the time to enjoy a stress-free Christmas. Such peace of mind will make anyone happier and more effective in other more important areas of life. For some people, completing tax returns take no more than a couple of hours; it is time for you to look at tax return filing as a simple task too. The early bird, after all, always catches the worm.