Five Benefits Of An Early Self-Assessment Tax Return
Posted on 11th October 2022
Although the deadline for your self-assessment tax return is 31 January it’s a good idea to submit it as soon as you can. If fact, almost 65,000 people sent in their 2021/22 tax return on the first day of the new tax year (6 April 2022).
Here are just five reasons why being proactive and submitting your tax return early will benefit you.
Peace of mind – some people like to complete their tax return as soon as they can because they will then know how much tax they must pay. They will have until 31 January and 31 July the following year to make sure they have enough money put aside for their payments.
Avoiding mistakes – the financial details will be clearer in your mind when you complete your tax return on or shortly after the end of the tax year. You will be less likely to make mistakes and more likely to include all your allowable expenses so you don’t pay too much tax.
Getting help – starting to collect all the information you need as soon as you can means that you will soon realise if you need some help. If you wait until the last minute you will find that bookkeepers and accountants are too busy with existing clients to give you advice or complete your tax return on your behalf.
Planning for your tax bills – for example, if you know you will earn much less or much more in the coming year you can ask for your payment on account to be reduced or make sure you put enough by for your balancing payment.
Receiving your refund quickly – if you have paid too much tax you can claim and receive a refund more quickly.
Filing your tax return
The easiest, fastest and most secure way to complete your tax return is online, via your Government Gateway account.
Alternatively, you can complete a paper tax return form (SA100) by 31 October if you’re unable to make an online submission. However, you should be aware that from April 2024 self-employed business owners and landlords with total business or property income of more than £10,000 will need to keep digital records and submit self-assessment tax returns online.
Help with your tax return
You can appoint a relative, friend or other agent such as your bookkeeper or accountant to complete and send your tax return on your behalf but you must let HMRC know if you decide this is the best option for you.
You should choose your agent very carefully and be sure that they are trustworthy. They should never need to log in as if they are you and you must not allow them to share your Government Gateway user ID and password. They can access all the information they will need from HMRC’s digital agent services site.
Even if you appoint an agent, it will still be your responsibility to make sure your tax return is completed correctly and submitted on time.
Furlough payments in 2021/22
If you claimed Self-Employment Income Support Scheme grants or received furlough payments from an employer during the 2021 to 2022 tax year you should include it all in your self-assessment tax return. These payments are taxable along with any other HMRC coronavirus support scheme payments including those from local authorities or devolved administrations.
Please get in touch if you would like information or advice about your self-assessment tax return.
Tagged as: Early submission, Self assessment
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