29-01-2019
Sooner is better than later

Last week we passed the filing deadline (31 January 2019) for the 2017-18 self assessment tax returns. A surprising number of taxpayers are still content to deal with this annual chore at the last minute. This article sets out a few compelling reasons for preparing your tax return as soon as you can after the end of each tax year.



  1. Until you prepare your return and calculate your liability for a tax year, you can have no certainty about the level of any tax payments that you may have to fund in the January and July of the year following the tax year end. So for 2018-19, payments possibly due January and July 2020. By crunching the numbers as soon as you can you will maximise the time you have available to save for any taxes due.

  2. If your return is prepared before the end of July 2019, there may be a possibility to reduce the second payment on account for 2018-19 (due 31 July 2019) if your liability for 2018-19 is lower than that of 2017-18.

  3. By preparing your return early in the tax year there are a number of tax planning opportunities that you will have time to consider before you formally file your return. For example, you could make charitable contributions in the year following the year of the return and carry them back to the previous year.

  4. You will be your tax advisor’s best friend as early-birds will increase the time available for consideration of tax planning options.

Tax saving opportunities


You will note that we use the expression “prepare” rather than “file” in our notes above. The deadline for filing a return is the 31 January following the relevant tax year end. By preparing the return as soon as possible after the tax year end date, we can ascertain what tax liabilities are expected and what opportunities there are to save tax by adopting any tax planning options.

Source: HM Revenue & Customs | 29-01-2019

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    20-08-2019
    National Insurance if you work abroad

    If you move abroad, ... read more

    20-08-2019
    Tax if you work abroad

    If you are leaving ... read more

    20-08-2019
    When can you increase your rental income?

    The ability to ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.