Why does everyone wait until January to do their tax return? The truth is you just don’t need to.
After so many months of difficulties for business, and losses for many, it is more important than ever to ensure your tax affairs are looked after in enough time. There are lots of reasons why it is a good idea to get your tax return in early, and avoiding fines is probably the least of all of them.
Some of the most important benefits of being on time are as follows:
- You don’t have to pay your tax bill at the same time as filing your tax returns.
- You have more time to plan for tax owed to HMRC, and receive any possible refunds or tax credits sooner.
- You have time to get your paperwork together without rushing and that helps to avoid errors.
Penalties are based on the amount of tax you owe with HMRC considering the following:
- 0% if you took ‘reasonable care’ to fill your taxes correctly
- 0%-30% if you made mistakes
- 20%-70% if you deliberately underestimated your tax
- 30%-100% charge if you deliberately underestimated and tried to conceal it.
According to HMRC, last year there were around 700,000 taxpayers racing to hit this year’s 31 January deadline having left their tax return submission to the last day – with 26,500 people submitting their return in the final hour between 11pm and midnight. There is just no need to be that last minute.
We’ll help you with your tax return whenever it is you want to do it, but we like to get things done well before any deadlines are looming. If you want a proactive accountant to help you with your tax affairs speak to your local AIMS Accountant.