The current tax year finishes tomorrow, the 5th of April. Are you prepared?

Here are five primary reasons why it's advisable to file your tax return sooner rather than later:

1. Enhanced control over your financial matters: Filing your return early allows you to determine your tax liability promptly, giving you the opportunity to manage payments over a longer period and avoiding unpleasant surprises. If you're unable to pay on time, HMRC offers a 'Time to pay' arrangement.

2. Managing payments in advance: Payments on account, made in January and July, are estimates of your upcoming self-assessment tax bill. Adjusting these payments requires accurate information, which necessitates early tax planning to potentially reduce the July payment.

3. Allotting time for registration: Registering for a UTR (unique taxpayer reference) number is a prerequisite for first-time tax filers. This process can take up to six weeks during HMRC's quieter periods, underscoring the importance of early registration.

4. Gathering necessary information: Collating documents like P60s, P45s, and income/expenditure details is essential for tax preparation. Requesting some of this information may lead to delays if done last-minute.

5. Peace of mind and avoidance of penalties: Filing early alleviates the stress of approaching deadlines and allows you to focus on the current tax year. Additionally, late filing incurs penalties, starting with a £100 fine for up to three months of delay, with further penalties and interest accruing over time.

If you need further assistance with your personal tax affairs, do not hesitate to contact us.