tax deadline Archives

The Early Bird Catches the Worm — The Benefits of Acting on Taxes Sooner

May 3, 2024/in 2023-24, Filing deadlines, HMRC, Self-assessment, Self-employed, Sole traders, Tax, Taxfile/by Taxfile

by Ali at Taxfile.

For many self-employed UK taxpayers, the January Self-Assessment deadline looms like a tax-shaped storm cloud. But what if you could banish that pre-deadline panic and transform tax season into a breeze?

Psychology tells us that we are motivated when one set of thought processes outweighs the opposing ones, tipping the balance to make us act. With that in mind, here are 7 key things that may motivate you to act on your taxes sooner rather than later.

1. Knowledge is Power

Filing early gives you a clear picture of your tax bill. This allows you to budget effectively and avoid any nasty surprises come January. Knowing if you owe tax or are due a refund empowers you to make informed financial decisions.

2. Less Stress = Happier

If you owe tax, filing early lets you explore HMRC’s Budget Payment Plan. This lets you spread the cost of your tax bill over monthly or weekly instalments, making it much easier to manage.

3. Faster Refunds = Even Happier

If you’ve overpaid tax, filing early means a quicker turnaround on your refund. That extra cash can be a welcome boost for your finances.

4. Time is Money

January is a notoriously busy time for HMRC and accountants. Filing early ensures you avoid spending hours over the phone to HMRC, or your accountant having to contact HMRC on your behalf and spending over 45 minutes on hold.

5. Spot Errors, Fix them with Ease

Sometimes mistakes happen. Filing early gives you time to review your return and identify any errors. This allows you or your accountant to rectify them before the deadline, avoiding potential penalties.

6. Proof of Income, When You Need It Most

A completed Self-Assessment tax return can be used as proof of income when applying for a mortgage, loan, or certain benefits. Filing early ensures you have this documentation known as an SA302 readily available.

7. More Time for Tax Efficiency (if Needed)

If your tax bill is higher than expected, filing early gives you more time to explore tax-saving opportunities with an accountant (if necessary). In our experience, it also allows us to keep an eye on your turnover and spot early if you might need to be VAT registered, or are steadily moving towards it. It could also allow us to advise whether you’d benefit from setting up a limited company.

File Early — and catch the worm!

By taking charge of your Self-Assessment early, you gain control of your finances and avoid unnecessary stress. So, ditch the last-minute panic and embrace the benefits of early filing.

Contact Taxfile & Take Control

At Taxfile we would like to instil healthy habits in our clients and encourage you to come and see us in the early months after April. By doing so, we can file your tax return early and remove all the stress and worry.

Get ready by making an appointment to see our tax agents today. Call, message, or use our online booking system:

020 8761 8000 Book Appointment Contact Us

Taxfile are tax advisors & accountants in Tulse Hill, Dulwich, South London & the South West of England.

A Personal Message from Guy Bridger at Taxfile

January 29, 2022/in 2020, 2021, 2022, Accountancy, Accountants, Advice, Deadline, Dulwich, Filing deadlines, Guy Bridger, HMRC, Income tax, Late return, London, Online returns, payment plans, payments on account, penalties, Self-assessment, Self-employed, Sole traders, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, Tax calculation, Tax returns, Taxfile, Tulse Hill/by Taxfile

Dear Taxfile Client,

We’re aware that many people are struggling right now. So, I wanted to personally touch base with you to confirm that, although the official deadline for submission of 2020/21 self-assessment tax returns and tax payments is Monday (31 January), there is now some extra time this year. This is great news for you if you are concerned about missing the deadlines or having to pay an HMRC penalty for being late. It should really take the pressure off for those who are struggling or worried.

For self-assessment tax returns, you now have until midnight on 28 February to submit. HMRC will only charge you a late filing fee if you file later than this.
For self-assessment tax payments, you now have until 1 April to make your payment (or arrange an HMRC payment plan) before incurring an HMRC late tax payment surcharge. While you will still incur interest for late tax payments from 1 February, HMRC’s interest rate is only 2.75% per annum, so even a month’s interest is unlikely to equate to much for most people.
For tax payments on account (payment in advance for the next tax year), there is no HMRC surcharge/penalty if you’re late but it does attract interest. However, again, that’s only at HMRC’s low rate, so is unlikely to amount to much for most.

We are here to help you, so don’t worry if you owe tax or are running late on your tax return. The Taxfile team can help you sort things out, particularly as we have a little longer than usual. We can work something out during February if you are worried about HMRC surcharges, interest and deadlines. Please get in touch if so.

020 8761 8000 Book Appointment Get Started Here

Lastly, don’t forget that we are open on Saturdays during January and February (by appointment) and open later (until 6pm) on Mondays and Tuesdays. Read more

5% Late Payment Penalty Relief Announced by HMRC

February 23, 2021/in 2020, 2021, Deadline, Filing deadlines, Income tax, Late return, payments on account, penalties, penalty, Self-assessment, Self-employed, Sole traders/by Taxfile

HM Revenue and Customs (HMRC) has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1st April 2021.

Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3rd March. But this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or to set up a payment plan.

Taxpayers have until 28th February 2021 to file any pending tax returns and prevent being charged a late filing penalty (of £100). They then have until 01/04/2021 to pay any outstanding tax or make an arrangement with HMRC for a payment plan before they receive a late payment penalty.

We encourage any of our clients that are struggling to meet their tax obligations to set up a payment plan to spread the cost into monthly instalments. More information can be found on the Government website HERE. You will be able to spread the cost of their self assessment tax bill through to January 2022.

If you have any questions, please do not hesitate to contact us on 020 8761 8000 or, if you still have a 2019/20 tax return to submit, then we can help you get this in on time to avoid the £100 late filing penalty. We will be open on Saturday the 27th & Sunday 28th February.

We Submitted Over 400 Tax Returns in January!

February 19, 2020/in 2016, 2017, 2018, 2019, 2020, Accountancy, Accountants, Battersea, Deadline, Dulwich, Exeter, HMRC, penalties, Self-assessment, Tax advice, Tax returns, Tulse Hill/by Mark

Taxfile prepared and submitted more than 400 Self-Assessment tax returns for clients during January. That’s about a hundred a week and goes to show just how busy it gets for us during January, the busiest month in our accounting calendar.

Did you submit your tax return on time?

The deadline for submission of your tax return (and payment of any tax due) was 31st January at midnight. Did you manage to submit yours in time? If not, you’re already into the ‘penalty’ period where HMRC basically fine you for being late. The penalty comes in the form of an initial £100 fine but that increases, potentially very significantly, as you get later and later with your tax return submission. If you look at the table below, it’s safe to say that you can end up owing a thousand pounds or more if you bury your head in the sand and are 3 months late, or more. If you continue to leave your tax payment and tax return submission outstanding for six months or more, the penalty is £1300 as a minimum – perhaps more (it depends upon how much tax you owe).

Is your tax return & tax payment late? Taxfile can help!

If you are late submitting your tax return or paying tax and don’t know how to straighten things out, don’t Read more

You have only HOURS left to submit your Tax Return!

January 30, 2015/in 2014, Accountancy, Accountants, Advice, Deadline, Dulwich, Filing deadlines, HM Revenue and Customs, HMRC, Income tax, Key dates, Late return, London, penalties, penalty, Self-assessment, South London, Tax, Tax accountant, Tax accountants, Tax advice, Tax advisers, Tax agents, tax experts, Tax return, tax return amendment, Tax returns, Tulse Hill/by Mark

You’re running out of time to submit your tax return and have just HOURS left! We are here to help you fill in and submit your self assessment tax returns to HMRC on Saturday 31st (by appointment only, 9-1pm) so come and see us quickly or you may miss the HMRC deadline. If you do miss it, you’ll get an automatic fine of £100 minimum – and it could get significantly worse (up to £1,600) if you continue to delay.

It doesn’t matter if you have zero tax to pay – you still need to submit your tax return on time. You also need to have paid HMRC any tax due for the 2013-14 financial year. So don’t miss your last chance to get our professional help with filing of your tax return!

ACT NOW and contact us on 020 8761 8000 or book an appointment online.

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