This particular one will also leave you feeling organised and just a little smug:
File your tax return early – do not wait until the end of January.
The reasons for this are many, including the early collection of tax refunds, extra time to plan for the tax bill, and no penalties for missing the deadline.
Earn interest on any tax refunds due
The early calculation of your tax bill means that any refunds can be dealt with quickly by HMRC. Their systems often struggle to cope with the sheer number of tax returns being filed near the deadline, meaning you’ll have to wait for your refund.
Don’t worry about having to pay your tax bill early though because it does not work like that. You are only liable to pay tax due by the usual deadlines, even if you file the return early.
Plan carefully for the tax bill
Filing early offers you more time to plan. You can implement a strict credit control policy, or if there’s one already in place, keep a close eye on cash flow in the months leading up to the tax deadline.
Avoid filing penalties
Hefty penalties have to be paid if you file your tax return late. An automatic £100 filing penalty is just the start. Delay is filing it for more than three months, and you’ll suffer daily penalties of £10 up to a maximum of £900. Southside Accountants in Wimbledon SW19 can help you avoid all penalties.
Use your tax code to ease cash flow
Filing your tax return before 30th December 2014 means you can use your tax code to pay, as long as the bill does not exceed £3,000. Pensioners in particular benefit from having their bill deducted from their pension on a monthly basis.
Keep up with your Tax Credit application
If you claim tax credits, the claim renewal needs to be sent by 31st July each year. Filing early lets you submit figures with confidence, avoiding over or under-payments which can be difficult to rectify.
Early filing means you will not have to rush, and the risk of making errors is reduced. You’ll have plenty of time to gather together paperwork, and consider all tax planning options.