You’re busy juggling all the different responsibilities of running your own business. Filing your tax return is on your to-do list but somehow, someway, it keeps getting put off.
We’ve all left something until the last minute. You have a lot on your plate, and it’s natural for a few things to slip through the cracks every now and then. But filing your tax return early can be hugely beneficial for you and your business, saving you time, money, and setting you up for an even more successful year ahead.
Here’s why we always recommend filing your tax return early:
No matter when you file your return, the deadline for paying your tax stays the same
Let’s be honest: no one likes paying taxes. If you file your tax return early, does that mean you also have to pay your taxes early?
The deadline for paying your taxes will always be the same, no matter when you file your return. For the 2021/2022 tax year, you must file your return and pay your taxes by midnight on 31 January 2023. That means you could have filed your return on 6 April 2022 (the day after the tax year ended) and still not need to pay any taxes until 31 January 2023.
And, by filing early, you’ll have way more time to plan for when you do eventually have to make that payment.
Know – and plan for – your tax liability
The sooner you file your tax return, the sooner you’ll know what you owe HMRC come 31 January. By filing early, you can start putting money aside in preparation instead of doing a last minute scramble to find the cash.
Avoid unpleasant surprises or penalties
Surprise parties? Fun!
Surprise tax bill? Not fun.
Getting hit with an unexpectedly high tax liability is stress inducing at the best of times. It’s even more stressful if you left your tax return until the last minute and now only have a few weeks, or days, to get the cash together you need. Plus, if you aren’t able to pay on time, you’ll start incurring additional penalties and interest on your tax bill.
Save yourself the stress and the money. File your return early.
Get any refunds you’re owed earlier
Filing your return doesn’t have to mean all bad news. On top of figuring out what you owe HMRC in a few months’ time, you also might find out that HMRC owes you and receive your tax refund earlier. If you could get money that’s rightfully yours in your bank account faster, why wouldn’t you?
Save yourself stress and time
Proper preparation makes everything easier. The more time you give yourself to pull together invoices and receipts, tidy up your books and confidently file your return, the less stressful the whole process becomes.
We’re big believers in preparation and proactivity at Starfish. Small, sustainable steps like filing your tax return early lead to big, positive changes in your business and your life. If you’d like support in filing your tax return, or preparing for the upcoming transition to MTD for ITSA, contact the Starfish team here.