Summer is the perfect time!
1. Escape the Christmas Chill and January Panic!
31st January is a deadline, not a target. Every year, we hear the panicked cries of business owners who leave their tax returns until the last minute. Come January, reality hits:
missing paperwork, the realisation that the paper returns deadline has passed, software struggles, and the stress of not knowing where to start. Beat the cold, grey January blues by completing your tax return in the summer – a season of warmth and clarity. Don't let tax season be a stress-fest; plan ahead and enjoy your winter worry-free. ☀️🗓️❄️
2. Embrace Change with Confidence!
Waiting until January out of fear you might need to make changes? Fear not! HMRC allows alterations three days after your last filing. It's smarter to file in the summer and make adjustments later than to succumb to the panic filing cycle. Remember Dante Alighieri's wisdom: "The secret to getting things done is to act." 🌟💪📅
3. Demystifying 'Payments on Account' for First-Timers!
First-time filers often stumble over 'payments on account.' In January, businesses make two payments to HMRC – one for the income tax of the recently filed return and a prepayment for the upcoming tax year. File in the summer, and you'll have ample time to budget for both payments due on January 31st (with a second installment on July 31st). Don't let the unknown catch you off guard; plan ahead and sail through tax season smoothly. ⛵💰
4. Stay Ahead of HMRC Adjustments!
After filing, HMRC may make adjustments. Good news: not all adjustments are bad. Overpaid on your payments on account? HMRC will credit your January payment. File early, and you'll be in the know about any credit owed to you. Remember, 'pennies make pounds' – every bit counts! 🧾💡💰
5. Summer: Your Document Wonderland!
By summer, all financial docs for the prior tax year will be in your hands. Employers and financial institutions send them around the same time in May, making it a breeze to gather what you need. Save yourself the last-minute scramble and file with ease in the summer sunshine. ☀️📑📂
Bonus advantage: Paying Taxes via the PAYE System
If your tax owed is under £3000 and you file by December 30th, you can opt to settle tax that would be due by January 31st via your tax code. Here's how it works: HMRC adjusts your tax code and spreads the owed amount over 12 months, starting from April. Instead of a single hefty payment, you'll manage your tax payments more smoothly throughout the year. For instance, let's say you owe £1000 in tax. After filing by December 30th (ensuring that you select to pay via PAYE), HMRC updates your tax code, and from April onwards, they collect the £1000 owed over 12 months.
Ready to Embrace the Summer Filing Advantage?
🌺 We've got your back, join our Email Community for a free DIY Self-Assessment Prep Checklist, HMRC self-assessment deadline reminders and gentle nudges to file your self-assessment early.
Are you prepared for a stress-free tax season? 📝🚀