Self-Assessment Tax Returns; the Early Bird catches the Cash!
How filing your Self-assessment return early could save you money
So why could filing your self-assessment return early save you money? So many people who need to file returns wait until the last minute but this could cost unnecessary expense in payments on account to the Revenue.
Payments on Account; what exactly are these?
If your tax bill is over £1000 (with some exceptions) you will not only have to pay the tax due on the 31st January but also half again towards the next year. There is then another payment on account due at the end of July. This is why filing your tax return early can save you unnecessary payments to the HMRC. And let’s face it – do you want your money in your bank account or in the Revenue’s?!
If your income is less than the previous year you may find that the payment on account due in July doesn’t need to be made or can be reduced! That’s good news in itself but it gets better. It can be possible that a refund is due. What better news is there for any small business especially after the lean times of lockdown! Any funds paid into your bank account are welcome and can be used to invest in your business . . . . . or go on holiday though probably in the UK!
Please contact M:Power Accounting if you feel that you could benefit from an early self-assessment review to avoid paying unnecessary amounts to HMRC in July. As we come out of lockdown every penny makes a difference; invest in your business rather than the HMRC!