1. Faster refunds
If you believe you have paid too much tax in the previous tax year, it's beneficial for you to complete your tax return early so HMRC can repay this to you sooner. The money is better in your own bank account earning interest than it is with HMRC!
2. Extra time to plan liability payments
You may find that you have additional tax to pay and although the payment deadline is not until the 31st January 2016, completing your return and confirming your liability sooner will allow more time for you to plan for this liability.
3. Payments on Account
If you have made payments on account based on your liability for the previous tax year, it's beneficial for you to complete your return before July as you may not need to pay the second payment on account in full, or at all!
As the filing deadline approaches, it's harder for Accountants to ensure the return is prepared in sufficient time which usually means additional resources are required to carry out the service. Therefore it's common for Accountants to charge a higher fee as the deadline approaches and therefore we advise you sign up as soon as you can.
5. Reduced risk of errors
If you complete your tax return close to the deadline, you may accidentally miss reporting on a key piece of information which will make your return incorrect. An incorrect return may also lead to penalties from HMRC, so it's better to have your return completed earlier so you have sufficient time to review and confirm all the information is present and correct.
6. Contacting HMRC
HMRC have always been difficult to get through to in December/January due to the volume of additional queries that arise from individuals submitting their return late. Earlier in the year this process is usually much easier if you have any queries to raise.
7. Peace of mind
Finally, filing your tax return early gives you added peace of mind that another task that has been completed; especially if you expect you have an additional liability to pay.
Why use PayStream?
For many of us, long term tax planning, dealing with the HMRC or completing a Personal Tax Return sends our stress levels through the roof. So why not let our TAX Team help you with bespoke tax advisory and compliance services. Please visit here for more information if you haven't already signed up.