File your tax return early to avoid getting ripped off
Procrastination makes easy things hard and hard things harder. When it comes to filing your tax return, the earlier, the better. Including not having to struggle meeting tax return deadlines, early tax returns can save you money in many ways. These are just a few:
Evaluating your options
Filing your tax return earlier gives you more time to assess your options when it comes to managing your finances. If your circumstances have changed in the last tax year, filing early gives you time to seek accounting advice. You have time to consider new tax planning opportunities. If your business has grown, you may feel it is time to hire an accountant. Someone who can manage your finances and remove the tax burden from your shoulders. Or, if you haven’t earned as much recently, then you may need time to reduce the payments that will be made on your accounts on July 31st. For this, you may need a helping hand from an experienced accountant.
Completing an early tax return means the funds needed to cover your tax bill will come as no surprise to you. Unless your accountant has failed to communicate how much you need to be prepared to pay. Putting these aside in advance, to cover your taxes, will allow you to ensure your cash flow is safe and there are no adverse impacts on your business. Make sure your accountant has given you plenty of time to get your finances in order. If they don’t, as so many fail to do, it may be time to find a new accountant who won’t be losing you money.
Filing at the last minute yourself may mean you have not given yourself enough time to make the preparations you need to be able to pay HMRC. It’s at times like these that interest and late payment penalties start to come into play and take their toll on your cash flow.
You could save money
HMRC uses your previous year’s figures to estimate your accounts for this year. If your income has fallen, the cash available to go towards tax payments might also be reduced. If this is the case, it is worth finding out whether your tax payment can be reduced. A reliable accounting service will help you by looking to see whether the payment can be reduced before July 31st. Before the payment is made. Your tax payment could be reduced to £0 payment. If you overpaid in January, you will receive a refund when you submit your payment.
Completing your tax return early means you don’t need to rush it. Take all the time you need to make sure all the information is accurate to avoid any nasty surprises from HMRC. You won’t be spreading yourself thin, struggling to find misplaced receipts and necessary financial information with only a few hours until the deadline. The stress of this alone is enough to make you wish you had filed earlier. Or that you hired an accountant to do it for you. But, this comes with its own issues as so many accountants are slow and poor communicators.
Even if they don’t make mistakes, lots of accountants take too long to prepare tax returns. They fall victim to the same procrastination, or in some cases, laziness that results in the January madness. They leave the amount of the payment to the last minute, with no regard to how this will impact you and your business, often resulting in a huge shock. You may have been better off filing your taxes earlier, yourself. Or, the other logical solution is to use an accountant with a clear history of immaculate performance like Big Hand.
Big Hand is here to help you with your financial needs. Our affordable year-end accounting service means we do all the heavy lifting. You’ll never have to stress over your tax return again. We can even get it done within 48 hours providing we have all the information we need from you. If you have been cheated by a lazy accountant, we’ve got your back. To get started, get in touch today on 0161 327 2911.