With the rapid approach of the end of the financial year for the majority of businesses, we thought we’d take a look at the benefits of getting your tax return sorted out as early as possible. There really is no down side to being prepared well before the distractions of Christmas and the New Year festivities later in the year.
You don’t have to pay what you owe until the 2019 deadline
Even if your 2017-18 tax return shows a debt to HMRC, you don’t have to pay it back until the normal due dates:
• 31st January 2019 (balance and the first payment on account- if applicable)
• And 31st July 2019 (second payment on account- if applicable)
…but if you’re owed money, you’ll probably get it back early
If you file your tax return before the January deadline, you should receive any tax refund you are due soon after you’ve submitted it; HMRC do not wait until 31st January to pay you. If you think that you have overpaid tax and are due a refund, you really should prepare your tax return as soon as possible so that you can get your cash back in the bank!
Managing cash-flow and saving for any debts
Working out your tax liabilities early gives you more time to make sure that you have enough cash in the bank to pay your debts in January. Ideally, you should be putting the money aside anyway, but just knowing that you have an extra 8 months to prepare often gives you a lot of breathing space.