When this year’s Budget was announced in April, one of the most talked-about aspects of the Chancellor’s plans was the abolition of the personal tax return and its replacement with a new system. The current system was described as being overly complex, time consuming and a costly way of reporting for individuals.
However, it doesn’t look like the changes will be implemented in any haste, so the current system will remain in place for the foreseeable future, which will be a continuing source of stress for a number of self employed individuals for the coming years. For this, and many other reasons, this is the time of year when accountants and financial experts recommend that those who use the self assessment tax return system get their forms completed now, rather than waiting till the deadline.
Every year, as Christmas draws near, independent professionals all over the country start to feel the self assessment deadline looming. While most people are enjoying the festive cheer, they are wondering if they can remember where they put their receipts, frantically compiling spreadsheets and hoping that they have put enough aside to cover their bills. However, all this can be avoided by completing your tax return in a timely fashion, allowing you to relax and enjoy the holidays without having to worry about the 31st of January deadline.
It is important for early filers to note that there is no need to pay any earlier when you file in advance of the deadline – you will have plenty of notice of your tax bill so you won’t have any nasty surprises, but you don’t actually need to pay HMRC until the original deadline. However, if you are destined to receive a tax refund, then there is no need to wait until next year for it as the information will be processed in good time and before the hugely busy period which inevitably comes around the final deadline.
Those who make payments on account could benefit from completing their tax return early as they will be able to ascertain your statues earlier and therefore, in cases where an individual’s income is less than the previous year’s, you may not even need to make a payment on account at all. Everything from tax planning to registering changes or making amendments is made easier when you submit your tax return early, not to mention the peace of mind that comes from knowing you have done one of the most important jobs of the year in good time.
If you are considering self employment and want to get an idea of what your finances could look like, then our take home pay calculator is a great way to work out what you could be earning and how much you could make in an average year. For more specific advice and information on everything from filing your tax return to planning for the future, call our friendly team today on 01253 362062 or email us at email@example.com.