Another standard aspect of the tax process commonly put off until the dreaded filing deadline of 31 January is the “Filing of the Self-Assessment Tax Return”.
Typically, this is considered a behavioural problem and generally left until the last minute because it is often viewed as a chore and a process contributing little benefit.
However, having it prepared and filed as soon as possible means there are no nasty shocks of tax and possible payments on account becoming due without prior notice. A simple example where the income in the year to 31 March 2024 was exceptional in comparison to the previous year-
|
Tax paid 31 January 2024 |
On account for 2023/24 |
£ 5,000 |
|
Tax paid 31 July 2024 |
On account for 2023/24 |
£ 5,000 |
|
Tax due 31 January 2025 |
Final payment 2023/24 |
£40,000 |
|
Tax due 31 January 2025 |
On account 2024/25 |
£25,000 |
Would finding out in mid to late January 2025 that you have £65,000 to pay on 31 January 2025 come as a bit of a bolt out of the blue? Would you not much rather be aware of this in May/June 2024 to give you several months to budget and plan for this bill?
In a similar vein, it may well be that due to circumstances, a tax repayment is actually due to you! It does happen! Would you rather have the money in May 2024, so you can buy your football season ticket or however you want to spend it, rather than receive it in March 2025 when you submit your return at the last possible minute?
Please help yourselves by preparing the information needed for submitting your tax return and sending it to us early! It helps us too, because we do not have to burn the proverbial midnight oil in January, and we can prepare your figures so you have adequate time to review them.
