As 6th April rolls around, filing your tax return early might not jump to the top of your to do list but it could well be worth giving it more attention.
Managing Your Cash Flow
If you’re a sub-contractor and normally due a refund, there’s the obvious benefit of receiving your tax refund as early as possible which couldn’t hurt your summer holiday plans. If you pay tax, knowing what you’re due to pay in January will help you plan your cash flow. If your tax bill in any tax year is going to be less than the previous year, you might well be able to reduce the payment on account by the following July (assuming you’re due to pay one).
Leaving tax returns until later in the year will mean your memory won’t be so fresh (potentially resulting in mistakes on your tax return) and you could lose receipts, missing out on tax relief.
Once a tax return is filed, the Revenue normally only have a year to open an enquiry into it, they have longer if they have reason to suspect it is wrong, therefore, filing early means this date passes sooner reducing the risk of an enquiry which can be time consuming and costly.
Child Tax Benefit
Receivers of child tax benefit ought to complete the tax return by 31st July so the child benefit form can be completed accurately ensuring the correct amount of benefit is received. If you’re overpaid child benefit, the government will either reduce your child tax benefit payments or demand payment. Either event can be difficult to cope with financially.
File Your Tax Return Early
Whatever your circumstances, filing your tax return early and out of the way now is one less thing to worry about for the rest of the year.
If you need any assistance, please fill out the contact form below and we will be more than happy to help you through the process.