As a contractor or self-employed professional, managing your finances efficiently is crucial. One area where being efficient can make a difference is your Self Assessment tax return. While the deadline for submission is 31st January, there are many reasons to consider filing Early.
If you have waited in the past, you're not alone since over 3 million people left their tax return to the final month last year, with over 600,000 filing on the actual deadline day itself, according to HMRC.
Enhanced financial planning
Filing early helps you to budget effectively. Knowing the exact amount due gives you plenty of time to arrange funds, reducing the risk of financial strain as the deadline approaches.
Quicker access to refunds
If you're entitled to a tax refund, submitting your return early means you'll receive it earlier as well. This can improve your cash flow, giving you funds to cover business expenses.
Reduced stress and avoidance of penalties
Completing your tax return early takes away the pressure of last-minute submissions. It also minimises the risk of errors and ensures you avoid penalties for late filing, which can start at £100 and rise if further delayed.
Improved access to HMRC support
HMRC experiences a surge in inquiries before the deadline, leading to longer wait times for help. By filing early, you can access support more easily, if you need help during the process.
Take advantage of early filing and make your tax season stress-free. If you’re ready to get ahead, consider using a trusted tax service that can help you prepare and file efficiently. At PayStream, we ensure your Self Assessment is completed promptly and professionally, helping you avoid HMRC penalties. Plus, we’ll pursue any refunds you’re owed and flag any potential tax liabilities so there are no surprises. Register here.
