If there is one thing that every self-employed person hates it is their Self Assessment tax returns. Unfortunately, this is just one of the responsibilities that are going to fall on you when you venture out into the business world alone. When you first start out doing your tax returns, they can be complicated. Over time, when you start to become more successful, they are going to become time-consuming too.
Yet, there are a few things you can do to make your life easier with it comes to a Self Assessment tax return. Firstly, you can choose to work with an accountant. This is a popular route that a lot of self-employed people are choosing to go down. Alternatively, if you are wanting to do this process by yourself to start with, you can complete your Self Assessment tax return early.
How Early Can You File Your Self Assessment Tax Return?
When you talk about Self Assessment tax returns, everyone knows the final date they have to complete it. Indeed, a lot of people choose to leave this process to the last minute to complete. But, this is when the trouble starts and you make mistakes, as well as get stressed and confused. So, it is important to acknowledge that you can file your Self Assessment tax return early.
You are able to start on your tax return as soon as the tax year ends. Thus, you can start as early as 6th April. This is going to give you quite a while until 31st January. You will be surprised by just how many people file early. Note that this is the deadline for online applications through the Government Gateway account. If you are wanting to file your Self Assessment tax return on paper, you are not going to have as long as this to complete it. Namely, you will only have to 31st October to submit the paper Self Assessment tax return.
What are the Advantages of Submitting a Self Assessment Tax Return Early?
A lot of people dread doing their Self Assessment tax return. So, why on earth would you want to do it earlier than you have to? Well, there are quite a lot of advantages to this strategy, which you should consider.
First of all, it offers you peace of mind. It is very easy to put off a task and procrastinate because you do not enjoy it. But, at the end of the day, it needs to be done. If you start it early, you can know that it is done. This is going to be a weight off your shoulders and it will not be at the back of your mind for months. You can tick it off the to-do list and forget about it until next year.
Plus, when you start your Self Assessment tax returns early, you are going to have more time to do them. They are not always easy and it can be complicated depending on your finances. So, the earlier you start, the less you are going to be restricted by time. After all, we all know that if you make a mistake, no matter how innocent it is, you can be fined for it by HMRC. So, you want to take as much time as possible to ensure that this does not happen.
One of the biggest advantages of doing your Self Assessment tax returns early is that it is going to help with your financial planning. You can know how much money you owe HMRC in tax and be able to plan your payments per month. If you do it at the last minute, you are going to have this huge bill that you do not know how much it is. For some people, this will mean that you cannot pay. Thus, start early so that you can make your payment on time and without a late penalty fee. Plus, if you are due a tax refund, the earlier you do your Self Assessment tax return, the quicker you are going to get access to this.
Do not forget the earlier you consider your Self Assessment tax return, the better chance you have of getting help. For example, if you want to choose an account to help with your tax return, you are going to have longer to find a professional you like. You are not going to be rushed into making a decision and for everything to go wrong.
