Receive any tax refund early
There are several reasons why you could be due a tax refund. For example:
- Your ‘on account’ payments are based on a previous year’s income which no longer applies
- There could be an error in your tax code
- If you are a building subcontractor and your tax is deducted at source through the Construction Industry Scheme
- Your business has been impacted by the Covid pandemic and you find yourself in a loss position
Cash flow planning
Every business needs to accurately forecast its cash needs in the short to medium term and one of the biggest outgoings for the self-employed is their income tax bill.
Filing your return as soon as possible after April 6 2022 does not mean the tax is due early but it does mean you will know exactly how much tax is due in January 2023 and you can then plan accordingly – especially if you need bank funding or want to agree a payment plan with HMRC.
More time to focus on your business
If your business is traditionally quieter now or in the summer months then get your tax return done and out of the way, leaving you time to focus on your business when you can maximise profits.
Time to prepare
The later you leave it, the more rushed you will be in gathering all the information and paperwork you need to get the tax return prepared and filed. This risks errors and may lead to you paying more tax than you should.
Never miss a tax return deadline
If you file your tax return late HMRC will issue an automatic £100 penalty, irrelevant of how much tax is due.
If you miss the deadline by three months the penalty starts increasing by £10 per day to a maximum of £900. This increases again after six months and again after 12 months.
A record 2.3 million taxpayers missed the January 31 deadline last year. Don’t give your hard-earned income away to HMRC!
We can help
At TaxAssist Accountants, we can help you complete your tax return to make sure you only pay what you need to. We work with many who are self-employed, as well as business owners.
Just call us on 01302 957020 or visit TaxAssist Accountants at 157 Balby Road Doncaster DN4 0RG.