why you should submit your 2020-2021 tax return

1. Peace of mind

Being a tax return early bird will mean you won’t be spending the Christmas period working on your business paperwork to be ready to file your tax return on time.   

2. Better budgeting/planning 

Filing your self-assessment early will give you more notice of what tax is due. This will help you plan your cash flow by adjusting your finances. If you leave your self-assessment to the last minute, you won’t have enough time to check out the range of tax reliefs or exemptions available.  

3. If you’re owed money, you’ll get it back sooner 

If you are entitled to a tax refund, you should receive this once your tax return has been submitted and processed by HMRC. It is, therefore, well worth filing your tax return early as you will receive the refund earlier. In addition, as HMRC are quieter during the summer months, you are likely to receive the repayment much quicker.   

4. Accountants might be booked up if you try last minute 

Ask any accountant who will tell you how busy they are in December and January. If you are planning on using an accountant it is best to find (link to blog about picking the right accountant – not published yet) one sooner rather than later when they have time for you. When it comes to self-assessment, there are many possible pitfalls that you may not be aware of. Unless your business is simple, it’s worth asking an accountant to help you prepare or check your tax return.  They know the rules as to what you’re entitled to, and how your liabilities might be reduced. 

5. You won’t get fined (late/rushed mistakes) 

You are more at risk of making mistakes when you leave everything until the last moment. The longer you wait to tackle your tax return, the more likely you will forget to include something.  

Give yourself plenty of time. You can re-submit your tax return for no additional charge if you discover errors before the deadline. So, if you file early, you still have time to make any amendments. 

By getting your tax return done and submitted to HMRC long before January 31st, you won’t run the risk of incurring any fines for filing late.  If you’re late, interest will accrue on top of the minimum £100 penalty for missing the deadline for filing your tax return.   

 

Reasons Why You Haven’t 

 

1. You don’t want to pay early 

The misconception that you have to pay your final bill straight away if you submit your Self-Assessment early is one of the main deterrents to people getting organised in good time.  

What you need to recognise here, is that you can file your Self-Assessment and learn what you owe. As previously pointed out, this can be paid at a later date. 

2. You don’t have the time 

You’re too busy doing the work – maybe this is the time to find an accountant. 

3. You don’t have the right accountant 

As above, ask any accountant who will tell you how busy they are in December and January. If you are planning on using an accountant, it is best to find  (link to the blog about picking the right accountant – not published yet) one sooner rather than later when they have time for you. Finding the right accountant takes time  

4. Excuses 

Each year the HMRC publish their ‘worse excuses for tax returns’ 

1. My tax papers were left in the shed and the rat ate them. 
2. I’m not a paperwork orientated person – I always relied on my sister to complete my returns but we have now fallen out. 
3. My accountant has been ill. 
4. My dog ate my tax return. 
5. I will be abroad on deadline day with no internet access so will be unable to file. 
6. My laptop broke, so did my washing machine. 
7. My niece had moved in – she made the house so untidy I could not find my log in details to complete my return online. 
8. My husband ran over my laptop. 
9. I had an argument with my wife and went to Italy for five years. 
10. I had a cold which took a long time to go. 

Don’t bother trying this – HMRC didn’t accept any of them! 
 

Need help? 

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