09/01/2024
You have until 11.59pm on Wednesday 31 January 2024 to send HMRC an online tax return for the 2022/2023 tax year, which ended on 5 April 2023.
TAX TIME!
Self-Assessment applies to anyone who is self-employed, company directors, recipients of income from renting out a property or other sources not covered by PAYE, as well as those who receive income from abroad.
The Self-Assessment tax return must be completed annually, and the deadline for submitting the tax return is usually 31st January following the end of the tax year. The tax year runs from 6th April to 5th April the following year.
Many people put off completing their Self-Assessment tax return until closer to the deadline. There are many practical reasons why completing your tax return earlier may benefit you.
1.Better understanding of your liability.
It's important to file your tax return as early as possible to stay on top of your tax liabilities.
By doing so, you can take advantage of all allowable tax reliefs and avoid last-minute panic, as well as potential interest and penalties from HMRC.
It's worth noting that if you owe up to £3,000 in taxes, it may be possible to have it collected through your salary or pension, giving you more time to budget for payment. However, filing your return early does not necessarily mean paying your tax earlier.
Whether you plan to pay immediately or need to set up a payment arrangement, filing your tax return early can help you avoid unnecessary stress and stay in good standing with HMRC.
2.Receive any repayments quicker
If you are due a tax repayment, then submitting your return early will result in you receiving the repayment quicker, which could prove to be particularly useful for cash flow over the summer months.
3. Avoid unwelcome surprises next year.
You may be required to make payments on account based on your previous year’s income tax liability.
Calculating your tax liability early will provide you with more accurate details and knowledge of your upcoming tax liabilities (so that it doesn't come as an unexpected 'surprise' next year). You may also have an opportunity to reduce your payments on account if your income has reduced from the previous year.
4. Benefit your mortgage or remortgage application
If you are planning to buy a house or remortgage your existing property, you are typically required to prove your income by providing an SA302 and HMRC Tax Year Overview.
These documents will show how much income you have declared to HMRC and provide lenders with the information they need to progress your application.
This will also apply to other forms of finance or benefits, for example:
Universal Credit
Student Finance
Loans or vehicle leasing
5. Help you avoid late filing penalties from HMRC.
Leaving your filing until the last minute puts you at risk of missing the deadline. Penalty fines for late filing can range from £100 to 100% of your tax bill. So make sure you allow sufficient preparation time.
If you need any assistance when it comes to filing your self assessment tax return form please contact us today!
☎️ TEL: 07817 553882
💻 www.evolveaccounting.co.uk
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