The benefits of filing your tax return early
Filing taxes in the UK is a mandatory legal requirement for any individual, business or organization that meets certain criteria. While you may be tempted to put it off until the deadline, there are numerous benefits to filing your tax return early for the 2022-23 financial year.
Reduced Stress Levels
It's no secret that filing taxes can be a stressful experience. Waiting until the last moment can increase your stress levels and can lead to mistakes, inaccuracies, and errors. By filing your tax return early, you get to avoid that stressful scramble to meet the deadline. Instead, you get to relax and focus on other important aspects of your personal or business life.
Early Tax Refunds
Filing your tax return early means that you'll receive your tax refund earlier too. You'll get to enjoy the benefits of the refund much earlier than people who wait until the last minute to file their returns. This cash infusion can be crucial for your personal or business finances and can help you achieve your financial goals.
Avoid the Last-Minute Rush
Filing your tax return early means that you won't have to rush to meet the deadline. You'll have plenty of time to gather all the necessary documents, double-check your figures, and make any corrections before submitting your return.
Avoid Penalties and Fines
One of the primary benefits of filing your UK tax return early is that you get to avoid penalties and fines that come with late filing. If you file your tax returns past the deadline, you'll be subject to late filing penalties that can accumulate rapidly. By filing your returns early, you get to avoid such penalties.
Efficient Financial Planning
Another benefit of filing your tax return early is that it allows you to plan efficiently when it comes to your finances. Filing early means that you know exactly how much you owe, if any, and you can budget accordingly. This allows you to plan for the upcoming financial year better, both in terms of tax and overall finances for your personal or business life.
Less Stress
Filing your tax return early can reduce stress levels significantly. You won't have to worry about meeting the deadline, and you'll have peace of mind knowing that your return has been submitted correctly.
Free Up Time and Resources
Filing your tax return early frees up your time and resources, allowing you to focus on other aspects of your business, work or personal life. You don't have to worry about the stress and hassle that comes with trying to meet the deadline, which means that you have more time to dedicate to other important matters.
Increase Your Accuracy
By filing your tax return early, you increase your accuracy levels drastically. It gives you enough time to go through everything and make sure that all the information you provide is correct. This means that you are less likely to make any errors or omissions that could get you in trouble with HMRC.
Conclusion
Filing your UK tax return early for 2022-23 financial year can save you time, money and lots of stress. At "I Hate Numbers," we understand that the process of filing taxes can be overwhelming and stressful.
That’s why we offer professional tax and accounting services to individuals and businesses. Furthermore. contact us today for help and support on tax, accounts, and managing business finances.
Now, let's talk about the fabulous resources we've cooked up for you. Log in to your client portal (think of it as your secret recipe book) and find the Tax Return Checklist, or select this link . It's a complete list of ingredients we need to whip up your perfect tax return. Fancy tapping into some extra FREE I Hate Numbers resources about UK tax and business, you have blogs , videos and podcasts to browse through
Transcript
Filing your UK tax return early for 2022/23 has immense benefits. You may wonder, why should I file early? Well, besides earning some serious bragging rights, there are many treats for early filers. In this week's I Hate Numbers Podcast, I'm going to highlight why you should file early. I'm actually going to give you seven reasons for filing early, including reduction in your stress levels, tax refunds, avoiding penalties and fines, and efficient financial planning.
::Bit of a spoiler alert, carry on listening to the podcast and I'll expand on those themes. As with all these things, contact I Hate Numbers for any help that you need with your tax, accounts, managing your business finances, or just a virtual cup of coffee. Let's crack on with the podcast.
::You are listening to the I Hate Numbers Podcast with Mahmood Reza. The I Hate Numbers podcast mission is to help your business survive and thrive by you better understanding and connecting with your numbers. Number love and care is what it's about. Tune in every. Now, here's your host, Mahmood Reza.
::Now, filing taxes in the UK is a mandatory legal requirement for many individuals, businesses, or organisations that meet certain criteria. This podcast is not focusing on what those criteria are. Watch out for another podcast on that. But, while you may be tempted to put it off until the deadline, and for 22/23, by the way, the deadline is 31st of January
::2024. There are numerous benefits to filing your tax return early for the 2022/23 financial year. Here's number one of seven: stress levels. That's not having them, but reducing them. It's no secret that filing taxes can be a very stressful experience. Waiting until the last moment increases your stress levels and can lead to mistakes, inaccuracies, and errors.
::Filing your tax return early, you get to avoid that stressful scramble to meet the deadline. Instead, you get a chance to relax and focus on other important aspects of your personal or business life. Who doesn't want that? Reason number two of seven: tax refunds. Now, filling your tax return early means that you'll receive your tax refund, if you get one, much earlier.
::You'll get to enjoy the benefits of the refund much earlier than people who have to wait until the last minute to file their returns. Now, this cash bonus, this cash infusion, can be crucial and a welcome bonus for your personal or business finances, and help you achieve those financial goals. Number three:
::avoid the last-minute rush. Now, filing your tax return early, and remember, the latest absolute deadline for 22/23 is midnight, 31st of January, 2024. Now, filling your tax return early means you won't have to rush to meet the deadline. You'll have plenty of time to gather all those necessary documents, double-check your figures, and make any corrections you need to before submitting your tax return.
::That's three good reasons we've got so far. Let's come on to reason number four: penalties and fines, more so avoiding them. One of the primary benefits of filing your UK tax return early is that you get to avoid penalties and fines, that that money that goes into HMRCs coffers, and that comes with the territory of late filing.
::If you file your tax return past a deadline, you will be subject to late filing penalties, and they can accumulate quite rapidly, especially if life intervenes and you are distracted from doing that necessary task. Filing your tax returns early, you get to avoid such penalties, and you avoid putting money unnecessarily into the coffers of HMRC.
::Let's come on to reason number five, and it's all about financial planning, more so efficient financial planning. Another benefit of filing your tax return early is that it allows you to plan efficiently when it comes to your business and personal finances. Filing early means that you know exactly how much you owe, if anything,
::and you could budget accordingly. This allows you to plan for the upcoming financial year in much stronger terms, both in terms of tax, and overall finances for your personal or business life. Ideally, by the way, folks, you should be putting money aside as you are earning it as you're invoicing clients,
::but if not, then at least you know well before the deadline how much you owe. And also, by the way, folks, it helps on reducing any payments on account that you may have already in the pipeline. We're now coming into the final straight, and here's reason number six. It's about time and resources, more so freeing up your time, and freeing up your resources.
::Filing your tax return early frees up your time, frees up those resources necessary, and allows you to focus on other aspects of your business, work, and/or your personal life. You don't have to worry about the stress, and who wants that, and the hassle that comes with trying to meet the deadline, which means you have more time to dedicate to those other important matters in your life.
::A final point, number seven is about accuracy. Now, if you are a DIY filer, filing your tax return early, you increase your accuracy levels much more. It gives you enough time to go through everything you need to, check what's correct, check what's appropriate, and make sure all the information you provide is correct.
::This means you're less likely to make any errors or omissions that could get you into trouble with HMRC, and trouble in HMRC means unnecessary time being spent as well as the impact on your bank account. Now, folks, we've got seven good reasons for filing your tax return early. Filing your tax return early for 22/23 will save you time, money, and stress, which is a big factor in our lives.
::At I Hate Numbers. I understand that the process of finding can be overwhelming and stressful, and that's why we offer our professional tax and accounting services to individuals and businesses alike, whether you are a freelancer, sole trader, a limited company, contact us today for help and support on your tax, accounts, and managing your business finances.
::Until next week folks, I'll see you on the other side. We hope you enjoyed this episode and appreciate you taking the time to listen to the show. We hope you got some value. If you did, then we'd love it if you shared the episode. We look forward to you joining us next week for another I Hate Numbers episode.
