No, we don’t mean your 2019/20 return. Though we really do hope that you’ve done that one! Have you filed your 2020/21 return? With the last tax year ending on the 5 April 2021, submissions are now open for your tax return. Yes, we know the deadline isn’t until 31 January 2022 but why wait? Here are our top 5 reasons why you should seize the day and submit your return now.
1. Give yourself time to save
Even if you file your Self Assessment early, you don’t have to settle your tax bill until the deadline, 31 January 2022*. Filing early means that you’ll know exactly how much you owe HMRC and gives you time to save up to pay your bill. If you don’t file until the 31 January 2022 and find yourself unable to pay your bill, then you might find yourself in line for paying interest on the outstanding amount, along with a penalty or surcharge.
2. It’s still fresh in your mind
As the tax year has just ended your income/expenditure should be clear in your mind. It’s the perfect time to get all of those figures down on paper before starting new with this year. Use this as an opportunity to cleanse yourself and your business of 2020/21 and ensure everything is in order, submitted and tidied up.
3. Allows you time to register
If you are new to Self Assessment, then it’s not as simple as going online and submitting your return straight away. There are two stages to registration. You’ll need a Unique Taxpayer Reference (UTR) which is posted to you and can take up to 10 working days to arrive. Then you’ll need a PIN number which HMRC will send to you. The closer you get to deadline day the longer this process can take. Take advantage of it being a quieter time for HMRC and register now.
4. Save yourself the stress
We all know that December is a black hole for time, and disappears before you know it. We also all know that trying to get work done over Christmas leads to stress. By submitting your Self Assessment now, you can protect yourself, and your Christmas, from unnecessary stress and worry. Filing your return now allows you the luxury of time to check the details and make sure your figures are right, all with a clear head.
5. Get the help you need
In January 2021 a week before deadline day 1.8 million returns still hadn’t been filed. You can imagine how hard it would be to contact HMRC during this time if you had an issue. Similarly, accountants and bookkeepers get booked up months in advance for tax returns. Submitting your Self Assessment now means that you can access the help that you need quicker, and possibly at a better rate too.
There are many other reasons and benefits, but they’re our top 5. Hopefully, we’ve inspired you to file your return today!
Blue Fusion Bookkeeping Services can support you with our new bookkeeping packages that include your tax return submission. Please get in touch to find out more.
*you can still save if you pay on account
updated 14 April 2021