What Are The Benefits Of Filing Your Business Tax Returns?
HM Revenue and Customs write to the taxpayers in order to remind them that they should file their tax return by the last date. But, in spite of the best efforts of HMRC, taxpayers often postpone preparing their tax return till the festive winter period. In this article, we throw light on the benefits of filling tax returns and call upon taxpayers not to withdraw themselves when it is a matter of dealing with their affairs.
No acceleration of tax payments
If you file tax return with HMRC, then you are obliged to pay tax liability by the usual due dates.
Acceleration of refunds
If you file tax return prior to the filing deadline, then you should get any tax refund you are due after you have submitted it. HMRC fail to wait till 31st January to pay you. Thus, if you have any doubt that you have overpaid tax and are due a refund, then you should prepare tax return at the earliest so that you receive the interest of the cash earning in you bank account.
Management of cash flow
Filing tax return and then calculating any tax liability provides you the time to make saving for the bill and manage your cash flow. In case, you make payment of your tax bill late, then HMRC will charge interest from you and also penalties for late payment. Another benefit of filing tax return is that if your liability is under 3,000 and you happen to submit tax return by 30th December, then you can get your tax collected through your tax code. That means it will be subtracted from you pension or wages every month or week.
Time
If yours affairs have undergone any changes this year, then preparing your return tax can pay dividends as it gives you the time to ponder over any tax planning chances that could lead to tax savings. Moreover, having sufficient time to prepare return tax mitigates the risk of mistakes which are made. It also provides you time for bank statements to be collected and any other documents which you may need for filing the return.
Accountants
In case you make plan to use an accountant for dealing with your affairs, then you should know that some of the firms may charge a premium if you hand over your records to them close to the time limit. This is so because most of the firms of accounting pay overtime to their staff for completion of the return in time.
No acceleration of tax payments
If you file tax return with HMRC, then you are obliged to pay tax liability by the usual due dates.
Acceleration of refunds
If you file tax return prior to the filing deadline, then you should get any tax refund you are due after you have submitted it. HMRC fail to wait till 31st January to pay you. Thus, if you have any doubt that you have overpaid tax and are due a refund, then you should prepare tax return at the earliest so that you receive the interest of the cash earning in you bank account.
Management of cash flow
Filing tax return and then calculating any tax liability provides you the time to make saving for the bill and manage your cash flow. In case, you make payment of your tax bill late, then HMRC will charge interest from you and also penalties for late payment. Another benefit of filing tax return is that if your liability is under 3,000 and you happen to submit tax return by 30th December, then you can get your tax collected through your tax code. That means it will be subtracted from you pension or wages every month or week.
Time
If yours affairs have undergone any changes this year, then preparing your return tax can pay dividends as it gives you the time to ponder over any tax planning chances that could lead to tax savings. Moreover, having sufficient time to prepare return tax mitigates the risk of mistakes which are made. It also provides you time for bank statements to be collected and any other documents which you may need for filing the return.
Accountants
In case you make plan to use an accountant for dealing with your affairs, then you should know that some of the firms may charge a premium if you hand over your records to them close to the time limit. This is so because most of the firms of accounting pay overtime to their staff for completion of the return in time.
