The start of the new tax year brings about new opportunities for financial planning, but one that may not cross your mind is the chance to submit your 2018/19 tax return early! Technically, the deadline for online filing is 31st January, however you can actually submit your tax return from 6 April, at the start of the new tax year.
Why file early?
While it may sound like you have plenty time, your tax return is definitely something that’s worthwhile sorting out early. After all, you have jobs to do, people to take care of, things to organise. Life gets in the way of this sort of thing and before you know it, the deadline’s looming once again.
This is probably why there are thousands of people who end up submitting their tax return on Christmas Day, or missing the deadline altogether. Then comes the time for the ‘excuses’… Did your dog really eat your tax return…
This year save yourself the trouble and strife and sort your taxes out early – because whatever excuse you come up with, HMRC have probably heard it all before; and already rejected it.
What happens if you miss the deadline (and your explanation didn’t work?!)
You’ll face a £100 fixed penalty if your return is up to 3 months late, but it doesn’t stop there. You’ll also be charged £10 a day up to a maximum of £900.
If you still haven’t got it sorted by six months after the deadline, you’ll have to pay a further penalty of £300 or 5% of the tax due.
Aside from the monetary implications, if your finances aren’t in good order you could end up missing out on the important allowances and tax reliefs you are entitled to. Part of this is down to using your tax return to claim back any higher or additional tax relief you are entitled to on contributions you have paid into your pension – if you don’t you could end up losing out.
Let HL&W do it for you…
We believe its best practice to get on top of your tax return at the earliest opportunity? This means no risk of penalties; no need to transfer ‘submit tax return’ from one to-do list to another; no last minute scramble to meet the deadline; and no need to think up any late submission excuses.
We can help by preparing your tax return for you so that you get peace of mind that your finances are in order. If you’re a HL&W client, we will already most of the financial details, so it makes good, practical sense to let us take care of it.