Should you file your tax return early?

We’ve seen that HMRC are sending out emails asking people to submit their tax returns early. Why would anyone want to file a return before they have to? Clue – think of the midnight oil!

Actually, there are some good reasons for considering this in some situations.

If you’re expecting a tax refund, filing early means you’ll receive your money sooner. This can be really useful if you want to use the refund to pay off debts, make investments, or cover other financial needs.

By completing your tax return early, you can avoid any stress and anxiety that often comes with trying to meet a looming deadline. You also get a clearer understanding of your tax liability for the year early on. If you owe tax, you’ll have more time to plan and make sure you have sufficient funds available to pay by the deadline and avoid potentially incurring penalties for late payment.

Some financial institutions may ask for your tax return as supporting documentation for loan applications or proof of income

Knowing that your tax return has been filed early can give you peace of mind and allow you to focus on growing your business in the current financial year.

And last but not least, your AIMS accountant will love you for being organised and saving some of the midnight oil that would otherwise need to be burned next January!