12th July 2017 Posted by - Alexander Accountancy
Ignore the filing deadline.
Although this may sound strange it is really good advice.
The Personal Tax Return Deadline.
Ask most people when they need to file their tax return and the odds are they will say the 31st January. However the correct answer is as early as possible.
Filing your tax return early does not result in you having to pay any tax earlier than if you file it at the last minute. But what it is guaranteed to do is give you more time to plan your payments, and if necessary to save for them.
Filing early could mean that you can claim tax back within three working weeks. Typically this applies to many subcontractors. Why would anyone want to wait longer than they have to get money back from HM Revenue & Customs?
If the tax you have to pay is less than the previous year, then filing before the 31st July allows you to reduce excessive payments on account to the correct level. The question in these circumstances is why would you want to pay more than you have to?
The key personal deadlines are 31st October which is the final date for paper tax returns to be filed. Then 31st January which is the final date for electronic tax returns to be filed. It is also the final date to make any balancing payments of tax due for the previous tax year and the date by which the first payment on account for the current tax year is due.
But the key date for personal tax returns is 31st July, which is not a filing deadline at all. It is however the date when your second payment on account is due, and a date by which all the necessary information should be available.
If you are a sole trader or subcontractor there have been over three months to prepare your accounts. The same applies if you receive personal income from property. If you are employed or have your own company the P60’s will have been produced, as will any P11d’s that may be needed for benefits in kind. You should also have received all the details you need regarding any other income such as dividends, interest or pensions.
Alexander Accountancy always encourages best practice. If this is something you aspire to please telephone Burton on Trent 01283 743851 or email email@example.com and take advantage of one of our free reviews so we can help you achieve it.