By Dan Cozens, Accounting Manager, Armstrong Watson
It is never too early to complete your self-assessment tax return. In fact, as soon as the tax year ends you can submit your tax return.
This year, nearly 300,000 people completed their 2023/2024 tax return in the first week of the new tax year.
Risk of late tax returns
Leaving it until the last minute can lead to increased stress and anxiety, errors and omissions not to mention potential delays and penalties.
Of the 12.1m taxpayers due to file a tax return for 2022/2023, there were still £3.8m people who had not filed their return eight days before the January 31 deadline.
Those who do not file their tax returns or pay the tax they owe on time (also by January 31) will face a penalty – starting with an initial £100 fixed penalty before daily penalties are issued and additional penalties of 5% of the tax unpaid arise 30 days, six months and 12 months following the submission deadline.
Benefits of early tax return filing
While it can seem a daunting task, by starting earlier, your approach will be more organised and you will therefore reduce the risk of mistakes and have greater peace of mind. Most importantly, you will benefit from having more time to pay the tax you owe and can choose a payment option that works for you.
By taking to following practical steps you can transform a potentially stressful task into a manageable experience:
Gather your records including receipts, bank statements and P60 forms
Familiarise yourself with the tax bands, deductions and reliefs applicable to you
Break down the process into manageable tasks and set achievable deadlines for each stage
Regularly review your progress and make necessary adjustments as your circumstances change
Once you've completed your return, submit it well ahead of the deadline to avoid any last-minute hurdles
Remember, self-assessments are an essential part of fulfilling your tax obligations, so embrace the process and start early. If your tax affairs are complex, you may wish to consider assistance from an accountant or tax adviser.
Whether you complete your own tax return or use an accountant please get your records organised as soon as possible to file your tax return in good time. Apart from avoiding unnecessary penalties, it will be much less stressful and allow time to budget for your tax liabilities – particularly if there are surprise tax liabilities that arise.
If you would like assistance in completing your tax return, please get in touch on 0808 144 5575 or email help@armstrongwatson.co.uk.
