Due to the current Coronavirus situation, it may have passed you by that the new tax year started on 6th April and as such it is now possible to file your 2019-20 Self Assessment Tax Return. Whilst the deadline for filing the Tax Return is still 9 months away, if you are finding yourself with time on your hands at the moment, there are a number of benefits of filing early:
- Know your liability – The due date of your tax bill is exactly the same no matter when you file your Return and therefore if you have tax to pay then the earlier you know how much this is then the longer you have to budget for payment.
- Get your repayment – If you are due a repayment then submitting your Return early will result in the repayment being paid to you quicker. This could prove very useful during the current situation.
- Your documents will be to hand – P60’s, P11d’s and interest certificates are issued at this time of year and all are required to complete your Tax Return. There is less chance of them being misplaced if you use them to complete your Return soon after you receive them. Unfortunately, every year taxpayers receive penalties because they have to wait for copy documents to be sent to them after losing the originals.
- Proof of income – If you are looking for a new mortgage or to change the one you have then lenders will insist on seeing your tax calculations and tax overviews to verify your income. These are only available after your Return has been filed with HMRC.
- Claiming Tax Credits – If you receive any means tested benefits you usually have to provide details of your income by 31st July. Although you can use estimated figures, it makes sense to provide the actual amounts to ensure there is no risk of having to repay money later in the year.
- Increase accuracy and reduce stress – Mistakes are more likely to happen if you rush something and errors on your Tax Return can be very costly. You could end up paying too much tax if you do not claim all of the expenses and reliefs available. If HMRC believe that the Return is inaccurate they may launch an investigation into your tax affairs which would be extremely stressful with potential costly penalties.
The Tax Partnership can assist with the early preparation of your Tax Return. We have been filing Returns on behalf of clients for over 30 years! Our fees start from just £85 plus VAT. Please contact us to arrange a discussion on how we can help reduce the Tax Return preparation stress this year.