Blog Post

The benefits of submitting your self-assessment tax return early

Apr 19, 2022

The tax year runs from 6th April – 5th April, with the deadline for submitting online and paying any tax you may owe being the following 31st January. Although, the deadline for submitting your self-assessment tax return is 31st January, you can submit your tax return as soon as the new tax year starts on the 6th April, with the first payment due on 31st January.

1. Budget - Cashflow

Starting to work on your tax return as soon as the tax year has ended will help you budget for the future.

If you are due to pay more than £1,000 of tax you will have to make payments on account in advance for the upcoming tax year. If this is your first year to submit a tax return this can be quite a surprise to some. Therefore, starting your tax return early, you will know how much will be due on the 31st January, giving you plenty of time to save and budget for this.

If, however you are due a refund, HMRC do not wait until the 31st January deadline to refund you, they will normally refund a few weeks after you have filed the return.

2. Avoid Penalties

Leaving your tax return to the last minute will only make you rush it and more likely to make mistakes and may even miss the deadline, resulting in late filing penalties.

Starting early enables you to take your time in getting all your records together, if you have been using a good bookkeeping system throughout the year, all your records will already be together. If not, then you still have plenty of time to gather all your records.

3. Time to Register

The deadline to register as self employed is 5th October after your first tax year, starting early ensures that you register in time and that you will have all your login details in plenty of time to submit your return.

To find out how to register read our blog How to Register as Self-employed

4. Save Money

If you are using a bookkeeper or accountant to submit your tax return, then their charges may increase the closer it gets to the deadline date. Contacting and working with your bookkeeper early will ensure that they have all the relevant information in time, making their fee cheaper for you.

5. Peace of mind

Completing your tax return early is one job to tick off your to do list, which feels great. Less stress at Christmas as you won't be worrying about getting your tax return submitted. To reduce the stress even more you can appoint your bookkeeper to submit your tax return on your behalf.

NEED HELP?

CLS Bookkeeping Services is here to help you file your self-assessment tax return, contact us to find out more information.

Newer Post >

Found this blog helpful? Share with others

Are you ready for your tax return?

25 Sept, 2023

For small business owners, tax season can be a stressful and daunting time of year. It makes sense that you’d rather not think about it, but as a bookkeeper, every year I see business owners feeling stressed as the season approaches because they know deep down that rushing things and leaving it to the last minute can lead to mistakes and penalties.

Why hiring a bookkeeper can keep your business running smoothly during the summer

by Claire Summers • 26 Jul, 2023

School holidays can be tough on small business owners. Balancing work and holidays can be tricky, especially when you and your team want to take some time off with family. You want to be able to keep the business running smoothly while getting some time out. That's where hiring a bookkeeper comes in. As a small business owner, you might think that you can’t afford to outsource bookkeeping tasks, but a bookkeeper can save you time, money, and stress. Here’s how.

5 Bookkeeping Tips for New Small Business Owners

by Claire Summers • 31 Dec, 2022

When starting your new business, the bookkeeping may not be your priority as you are more than likely concentrating on growing your business. Keeping good financial records is essential for the success of your business. Here are 5 tips to help you get started with your bookkeeping.