Despite reminders from the HMRC and the many advantages of quickly filing an SART, a lot of people are still waiting to the very last moment with this. As many as 5% of the declarations are submitted in the last 24 hours! Do you have this problem in your company? In 2 minutes, you’ll learn why you should file your tax return as soon as possible.
The Self Assessment Tax Return (SATR) should be submitted by 31 October or in electronic form by 31 January of the following year. For example, the period of traditional billing for the fiscal year 2016/17 is completed on October 31, 2017; however, online we can settle that year to the end of January 2018. Contrary to popular belief, filing a tax return earlier does not mean you pay the tax earlier. Moreover, it is associated with several important benefits. Below are the most important reasons why you should file your tax return as soon as possible.
- You’ll avoid high penalties
Exceeding the aforementioned deadlines automatically exposes you to the so-called late filling penalty, i.e. the penalty for late submission of the settlement. The penalty depends on the length of the delay: for the first 3 months the amount is £100, and then it will be increased by £10 for each day of delay. The penalty can grow up to £1200! Unpaid penalties also accrue interest.
- You can plan your cash flow better
Earlier submission of the declaration means that you are aware of your tax obligations. Therefore, you can sensibly plan your cash flow, which in the Christmas period is especially important. If your tax liability is lower than 3,000 GBP, and you pay most of your taxes through PAYE, your underpayment may be collected through your PAYE code in the later year. This also liquefies your cash flows.
- You’ll receive your tax refund faster
You should file your tax return as soon as possible, especially if you have overpaid tax, so you’ll get your refund much faster than usual because HMRC does not have to deal with such a large number of returns.
Declarations made at the last minute are subject to additional scrutiny by the HMRC very much more frequently. Therefore, it is important to file your tax return as soon as possible
- Avoid errors in your papers
Tax returns prepared right before the deadline more frequently contain errors. You have to remember that the taxpayer is responsible for all the errors in their tax returns. If you receive a penalty because of them, you, the taxpayer (and not the accountant) will have to pay it.
- You’ll avoid fiscal scrutiny
Declarations made at the last minute are subject to additional scrutiny by the HMRC very much more frequently. Therefore, it is important to file your tax return as soon as possible.
- You’ll have quiet holidays
Earlier submission of your tax return will ensure you have a peaceful holiday without feeling that you are chasing deadlines and being threatened by penalties. Regardless of whether you are a single entrepreneur, a small company or a larger organisation, AroTax’s team of experts has the experience in the preparation and timely submission of tax returns and will readily relieve you of the chore.
And if you have already received a penalty for delay, please contact our experts. Every penalty can be appealed. It is worth doing this, especially if you have a clear and unarguable reason for being late. Our experts will help you prepare an effective appeal.