Now's the time to get your tax return for 2017-18 out the way.
The tax year finished on 5th April and tax returns are available to complete online.
The deadline for submission is 31 January 2019 but why wait for the deadline?
Here are some of the advantages of getting it done in good time:
- If you submit your tax return now you will have 9 months advance warning of the tax you need to pay by 31st January 2019.
- If you submit your tax return now you may be able to reduce the tax payment you are due to make by 31st July 2018. Known as a Payment on Account it is an advance payment of tax for your 2017-18 accounts.
- If you are missing any information to complete your return you have time to request it or find it.
- If you submit your tax return now you will have accounts that will tell you what your income was for the last 12 months, how much expenditure you had and what profit (or loss) you made. This will help you to make better business decisions for the next 12 months.
- If you made a loss it is even more important to submit your tax return as soon as possible as you may be able to get a refund of tax if you have paid tax on any earned income.
- If an accountant does your tax return for you they will be less busy with tax returns now than they will if you leave it until December or January. They may charge you less than they would if you left it until December or January as some accountants will charge a premium for preparing returns later in the year.
Tax returns are fairly straightforward to complete online once you have put all your figures together. There are a myriad of questions to complete which ensures you advise HMRC of every situation which is applicable to you. But once you have entered all income with associated expenses deducted you will be able to see the amount of tax you are due to pay. The tax calculation clearly shows how your tax has been calculated.
If you don't manage to get your self-assessment tax return submitted by 31 January 2019 you will receive a fine of £100 and the penalty will increase if it hasn't been submitted 3 months later.
Keeping your accounts up to date on a regular basis ensures you will be able to submit your figures to HMRC soon after your year end. Make this year the year you don't leave it to the last minute!
For more information on Self-Assessment Tax Returns visit HMRC website.