By Penny Lupton
By now, all UK employees should have received their 2013/14 P60s and P11Ds. Banks are also in the process of sending out interest certificate for the year and for many UK taxpayers these forms cover the bulk of their income and the process of completing the tax return can begin in earnest.
While the deadline for filing returns for the 2013/2014 year is still some way off - the deadline for paper returns is 31 October 2014 and for electronic returns it is 31 January 2015 - there are a number of advantages to getting it in early.
Completing your tax return will highlight any additional tax you have to pay. And even if you submit your return early you don’t have to pay any extra tax until the 31 January deadline.
Getting your affairs in order now will provide extra certainty of the amount due, and provide time to arrange payment, especially if an additional payment on account is needed.
Equally, if you are due a repayment, HMRC will repay this to you once they have processed your return. And with the bulk of returns being submitted later in the year or near to the deadline date, getting it in early can help your repayment jump the queue, and you therefore get your money back to you sooner.
HMRC has powers to enquire into your return. However, these are limited to the twelve months after your return was submitted. Getting your return in sooner rather than later, means that the enquiry window will close earlier and provide you with increased certainty that you have no further tax to pay.
Completing your return earlier will also give you more time if your affairs are unexpectedly complex. Capital gains transactions, share schemes, property income and large pension contributions are just some of the entries that may require extra consideration.
Getting started now will give you the time you need to get your tax return correct, or leave plenty of time if you want professional help with your return.
For more information please contact Penelope Lupton in our private client team, Email: email@example.com Tel: 0191 269 4098