Recently we passed the deadline (31 January 2019) for filing 2017-18 self-assessment tax returns.
The title of this post being ‘Sooner is better than later’, you know what’s coming! Don’t be like all those people who still leave filing their self-assessment until the last possible moment. By planning early, you can protect yourself from any nasty surprises up ahead; and not just that, but you can save money. And we all like that!
Take the following steps, and not only will your stress levels go down, you can forward plan, and your bank balance might even go up:
- Until you prepare your return and calculate your liability for a tax year, you can have no certainty about the level of any tax payments that you may have to fund in the January and July of the year following the tax year end. So for 2018-19, payments possibly due January and July 2020. By crunching the numbers as soon as you can you will maximise the time you have available to save for any taxes due.
- If your return is prepared before the end of July 2019, there may be a possibility to reduce the second payment on account for 2018-19 (due 31 July 2019) if your liability for 2018-19 is lower than that of 2017-18
- By preparing your return early in the tax year there are a number of tax planning opportunities that you will have time to consider before you formally file your return. For example, you could make charitable contributions in the year following the year of the return and carry them back to the previous year.
- You will be your tax advisor’s best friend as early-birds will increase the time available for consideration of tax planning options.
Help is at hand
Read more on the Government’s site.
And remember, the January 31st deadline is just that, a deadline. That doesn’t mean you can’t get your self-assessment return filed at any time in the year. So, for all those reasons above – the sooner the better.