Filing tax returns can feel overwhelming, especially when faced with the looming deadline. However, did you know that filing your tax return early offers numerous advantages? In this blog post, we will explore the benefits of filing your tax return early and why it is crucial for effective financial management. Discover how being proactive with your tax returns can lead to peace of mind, better budgeting, and easier access to assistance.
Benefits of Filing Your Tax Return Early
1. Claiming a Tax Refund Sooner:
By filing your tax return early, you can expedite the process of claiming a tax refund. Rather than waiting until January 2024, you can receive the refund amount sooner, putting the money back into your bank account where it belongs.
2. Enhanced Budgeting:
Filing your tax return early empowers you to effectively manage your finances. It provides ample time to set aside funds for any tax liabilities, ensuring you are well-prepared when the tax bill arrives. This proactive approach supports better budgeting and helps alleviate the stress of not having enough time to arrange payment.
3. Payments on Account and Time to Pay:
If your tax and Class 4 National Insurance bill for the tax year 2022/23 is over £1,000, filing your tax return early allows you to address payments on account for 2023/24. By making timely payments, you can break down your tax liability into manageable instalments. Additionally, if you are struggling to meet your tax bills, filing early enables you to set up a Time to Pay agreement, providing you with flexibility and ease in paying your tax bill.
4. Access to Help:
An early tax return filing ensures that you have easy access to
help from HMRC when needed. As their helplines become busier during the approaching deadline in January, filing early saves you from potential delays and allows you to seek assistance promptly. Enjoy peace of mind knowing that support is readily available for any tax-related queries or concerns.
5. Avoid Late Filing Penalties:
Filing your tax return early eliminates the risk of incurring a late filing fee of £100. By taking proactive action and submitting your tax return ahead of the deadline, you can avoid unnecessary penalties and ensure a smooth and hassle-free tax filing experience.
Filing your tax return early offers a wide range of benefits that promote financial stability and peace of mind. From claiming tax refunds sooner to better budgeting and easier access to assistance, becoming proactive with your tax return contributes to a more efficient and stress-free process. Don’t wait until the last minute; take advantage of the perks of filing your tax return early and enjoy the peace of mind that comes with being prepared.
We are on hand to help
If you need expert assistance with filing your tax return or have further queries, our team of experienced accountants is ready to provide the guidance you need. Our phones are open Monday to Friday 9 am until 5 pm for the whole of summer (and every week of the year).
You can contact us on 01704 211 434 or info@kafarr.co.uk
