Many accountants will start to contact their clients soon about submitting their tax return. ‘Why so early?’ I hear you cry?
I’m going to let you into a little secret…this is LATE.
The tax year runs from 06 April to 05 April every year. The tax return for that tax year is due for submission and payment by 31st January. At the time of writing, the current tax year finished 180 days ago. That is half way through the tax year (roughly). If you have a bookkeeper, your 5 April figures would have been ready a long while ago. So why wait?
Here are the reasons that people wait to submit their tax return for the full 300 days they are allowed:
1. They think that if they owe tax they will have to pay it the day they submit. This isn’t true – you still have until 31 January to pay it – wouldn’t you like to know 300 days in advance of any money you owe so that if you haven’t already budgeted for it you can start to put money away?
2. They think that it’s not important. It really is – you might need to apply for a mortgage, student finance for you or your offspring, apply for a business loan – all of these will need a submitted tax return
3. They hate HMRC – HMRC doesn’t have feelings – it doesn’t care if you submit early or on deadline date
So try to find a bookkeeper or accountant that prides themselves on having tax returns completed and submitted as soon as possible – you will thank them for it when you are sitting in your car in January listening to the radio adverts reminding you to submit and you are feeling smug that it’s already done.
