Self-Assessment tax returns, we know they’re not the most thrilling task, but don’t put them off.
In case you missed the reminder HMRC recently sent out, self-assessment tax returns for are due soon.
You have until the 31st January to submit your online return for the previous tax year. That doesn’t mean you can leave it until the last minute and submit it on the 30th… Trust us that’ll only lead to unnecessary stress.
There are several things you need to consider. So, start the process now and give yourself plenty of time, your future self will thank you.
What should I consider?
Mortgages and moving house
Are you due to re-mortgage or set up a new mortgage? Currently renting and thinking of buying? About to become a guarantor for someone? You’ll need up to date finances and proof of personal income, particularly in the current financial climate.
Most lenders will insist that you have up to date tax calculations, including your self-assessment tax returns for the last few years, including 2021/2022. It’s better you do yourself a favour and get everything up to date and submitted before applying for a mortgage, re-mortgaging or becoming a guarantor.
If everything has been submitted, you’ll avoid the last-minute panic of needing to complete your return before your mortgage offer expires.
Personal liabilities
It’s a great idea to forecast your business income and expenditure ahead of time, so it makes sense to know which personal tax liabilities are going to pop up down the line.
With self-assessment tax returns, the sooner you complete them, the sooner you’ll know how much tax you’ll need to pay and when. This means you can take the appropriate action and plan ahead for costs.
Contacting HMRC
Completing your tax return now, means you can identify any issues now. We’re not saying that everyone will have issues, but it’s much better to spot them early and give yourself a few months to sort them. Especially if you find you have a complex issue that you’ll need to contact HMRC about.
Trying to contact HMRC during December and January will be stressful. It’s a very busy time and you’re likely to end up stuck in call queues with others who’ve spotted a problem a few weeks before the deadline. Also, if you think your inbox is busy, imagine what HMRC’s inboxes are like the closer it gets to deadline day. Don’t expect a speedy response!
If you’re a Blu Sky client, please let’s avoid HMRC in December and January. In fact, we’d rather pretend they didn’t exist during those months… at times it feels like they don’t due to the sheer lack of response!
Refunds
Who doesn’t want a refund? The quicker you submit your tax return, the quicker you’ll find out if you’re eligible for a refund!
It can take up to four weeks for your refund to be paid once your tax return has been processed. Submitting on January 31st? Expect to wait the full four weeks for your refund, as HMRC will have a very, very long list to review and process.
Use your accountant’s time
Tired of nagging emails from your tax department and/or if you’re a Blu Sky client your Client Relationship Director? We’re afraid they won’t stop until we get the information, we need to help you get your tax return in on time. Sorry, but we really do need it now, as it’s a headache for us (and more importantly, you) if it’s last minute.
We probably speak for most accountants when we say this, but instead of chasing you for tax return information, we’d much prefer to work on something that’s going to have more of a positive impact on your wider business. So, let’s get your return sorted and over the line now so we can focus elsewhere.
Late fees
Okay so cut your accountant some slack, they’re chasing you about your tax return as ultimately they want you to avoid paying fees. Submitting late will land you with extra money to pay, and you get charged interest on late payments too.
You can make a change to your tax return 72 hours after you’ve filed it. But if you fail to correct inaccurate information, you could land yourself with a penalty. So, let’s get it right the first time.
Need self-assessment tax return advice?
We’re here to help! Please get in touch. The earlier you speak with us, the sooner we can sort everything out for you.
