File early – know what is due or get your refund early
Preparing or filing your income tax early might not sound like something appealing, but looking after your finances is something that should be prioritised. Let’s face it, as a self-employed person, if you don’t focus on this, who will?
Do you really want to ignore your own finances until the last minute?
Why I’d file early:
If you file your income tax return early and are in a refund position, you will receive that money in a matter of days.
If you have tax to pay, it isn’t due until November. This allows you to plan cashflow or think about a payment plan that might be needed.
You also have time to consider a pension top-up to lower your tax bill (& get funds into your long term savings at the same time).
Preparing early is always recommended. Take your time and review the full detail your accountant sends you (if you get a ‘checklist’), to ensure you have claimed everything you can claim.
Remember, your accountant might not remember everything that happened in your personal circumstances since 1 January 2019, so go through the detail of any changes and ask if there is a checklist you can review, to ensure you claim everything.
There are items that should be disclosed on tax returns that you may not be aware of (if you send your accountant your information without much discussion each year). They may not have an impact on what is paid or reclaimed, but disclosures may be necessary. To ensure this is complete, take time with your own tax affairs. Don’t rush or neglect them.
Have a lovely week