Why submitting your Self Assessment Tax Returns early is beneficial for you?
We are now well into September and working life is starting to get back to normal for most of us after the Covid pandemic. In less than 5 months time (which in reality will be here before we even know it) many self employed individuals will be panicking and rushing to submit their 2019/20 self assessment tax returns into HMRC before the deadline of 31st January 2021 passes.
Remember any self assessment tax returns filed after this date will lead to a minimum of £100 fine from HMRC. For those who submit at the last minute, it also doesn’t give them much time to make the payment to HMRC as the deadline for this is also the 31st of January 2021. Also studies show that a large number of self employed individuals wait to get Christmas out the way before submitting their returns, but then find out they have a shortfall due to the amount they have spent at Christmas!
So let me ask you this, why leave it till the last minute??
The self assessment tax returns for 2019/20 can be submitted to HMRC from any time after the 5th of April 2020 up until the 31st of January 2021. If you were to submit your returns early, there is no obligation to make your payment to HMRC early. You still have until the 31st January 2021 deadline to make the necessary payments. So, wouldn’t it be beneficial to submit your return early and then if there are any shortfalls in finances to make the relevant payments, it allows you more time to save up and plan how to make up this shortfall in time for the deadline.
If you have the necessary funds available at the time, then you may wish to make the payment straight away to get it over and done with. One thing to remember, this year HMRC allowed the July payment on account to be delayed until January 2021 so the payments due in January are likely to be higher than normal for those who chose to delay their July payment on account. I come across many people who say they are too busy to prepare and submit there returns and only do so when the pressure is on to get it done.
This reason is exactly why we at Tax Tyne are here. We can help prepare and submit your returns taking the stress and pressure away from you. In doing this we are likely to save you some money along the way so chances are our fees are likely to be covered by the savings you would make as well as leaving you with some additional savings as well.
To find out more contact us at firstname.lastname@example.org or call us on 0191 5111217