The 31 January marks the deadline for your Self Assessment tax return. If your client’s are yet to submit, it’s now more important than ever to prepare their documentation and receipts – so you both can get back to earning.
To help you clear the path for a productive start to the new year, we’ve asked Mike Parkes from AIA strategic partner GoSimpleTax to explain the benefits of filing today.
Focus on the new year
January is generally a slow month for everyone. It’s the reason why most restaurants and retailers offer incredible discounts after all.
So whether your clients are plumbers, freelancers or self-employed in some other capacity, you’ll know that prompting someone to make a purchase decision during this month requires a lot of chasing. All that is made much harder if you’re splitting your time between preparing your Self Assessment tax return and running your business.
This is why we encourage everyone to file early. Then, they can dedicate their full attention to their business operations.
Budget more effectively
Let’s not forget that submitting a tax return can result in you having a tax bill to pay. The deadline for tax payment is also the 31 January, so by leaving the tax return submission until the last minute, your clients won’t know how much tax they have to pay until very close to the deadline.
Have they made provision to pay their tax bill? Have they saved enough? Leaving the submission to the last minute can put them under financial strain if the answer to those questions is ‘no’.
Remember, filing the tax return early does not mean you have to pay the tax early. But the sooner you submit their tax return to HMRC, the sooner they know what their tax bill is.
Get the support you need
Accountants have it tough in January, as do HMRC’s call centres. Tirelessly working to help taxpayers submit tax returns accurately and on time, their customer service team try their utmost to answer queries and keep customers compliant ahead of the new tax year, but sometimes, they are inundated.
As a warning to anyone considering leaving their submission until the week before the deadline, in January 2019, HMRC failed to meet their target of keeping callers waiting no more than 10 minutes. In fact, almost 20% of callers waited over 10 minutes before speaking to an advisor.
In the event that you need support from their team, we would always urge taxpayers to submit their Self Assessment tax return earlier rather than later.
GoSimpleTax supports accountants all over the UK to file accurate Self Assessment tax returns for their clients. You’ll be able to do so quickly as well – their software automatically calculates income, expenditure and tax owed in real time, and from a variety of devices.
AIA members take a free trial today with no credit card required and receive a 25% discount. Upon registering for the trial you will be emailed your discount code.