That time of year is getting ever nearer, and while your mind may be on other things around this festive season, don’t forget that the tax return filing deadline is on 31 January 2020.
No doubt, completing your tax return is on your to-do list during January 2020, along with joining the gym and not eating those last few chocolates or mince pies. But how about thinking about it now, whilst deciding what to give your loved ones for Christmas?
Now is the perfect time to start checking if you have the correct information to complete your tax return. It is always a good idea to start contacting people at this time of year to obtain the information you need, for example, banks, pension providers or employers. The information may take time to make its way to you, therefore it’s better to do it now rather than leaving it until the middle of January. If you do not complete your tax return before the filing date, you could incur a fine of at least £100.
Another good reason for preparing your tax return now, rather than in the new year, is that you will then know how much tax needs to be paid to the Revenue by 31 January 2020, and this can help you to budget effectively, especially in view of the potentially expensive season fast approaching.
Secondly, if you owe less than £3,000 tax, and your tax return is submitted prior to 31 December 2019, you may elect to have the tax due, in respect of the year to 5 April 2019, deducted from your PAYE income in 12 monthly instalments (i.e. salary/pension) during the new financial year starting in April 2020.
This could significantly ease your cash flow!
But if this isn’t enough to convince you, another reason to submit your tax return now is that there could be some good news! If you are entitled to a refund, you may receive it directly into your bank account within just a few days of submission; thus having some extra money to splurge.
Wishing you all a happy and peaceful time over this festive season.
For more information on preparing your tax return and how we can help you, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.