This year we are encouraging people to file their 2022 tax return early.
Think ahead to October. The scramble to get your receipts together. The drama of not being able to find everything. The mad dash to drop them into the accountant. The inevitable phone calls that you have missed something. And the fear you may miss the dreaded deadline.
But this year could be very different. Just imagine a stress-free October. No receipts to unearth, no scurrying around and no panic because you filed your tax return during the summer, before the kids even went back to school!
And don’t forget just because you file now it doesn’t mean you have to pay now.
There are plenty of reasons to file early and we have outlined our top 5 reasons here:
1. More time with your accountant
The closer we get to the deadline the busier your accountant gets. If you go to your accountant late in the game they still should be able to get your tax return in on time. You can pay your bill, no late fees and you will still be tax compliant.
However, preparing your tax return in good time ensures you have time with your accountant to explore any tax planning opportunities available to you.
Not rushing to complete your tax return should also reduce the risk of any information relevant to the tax return being missed. Instead of the accountant’s time being spent chasing you they can spend the time examining bank statements and any other financial documents thoroughly for any additional tax-deductible expenses which may reduce your tax bill.
2. Tax refunds are accelerated
Why wait to receive your tax refund? Once you file your tax return, your refund should be processed soon after. If you wait until October, refunds usually take longer to be issued as Revenue staff and systems can be overwhelmed at this time.
Overpayments of tax can often arise on employees or directors, where Revenue have made errors with their tax credits. Building subcontractors who have had tax deducted at source through Relevant Contracts Tax are often in a tax refund position.
However, if you do have a tax bill to pay you don’t need to do this straight away. You can wait until the deadline to pay this.
3. Time to plan for any tax owed
Even if you file your tax return early with the Revenue Commissioners, you are only obliged to pay any tax liability by the normal due date. Filing and calculating any tax liability arising early, allows you to take control of your bill.
If you have a large tax bill you have the time to start budgeting and managing your cashflow. You can also look at your other options like speaking to the bank, chasing outstanding invoices and sitting down and talking through your options with your accountant.
4. Reduce the risk of filing late & penalties
Whatever you do, you do not want to miss the deadline! If you file your tax return late, you will automatically be handed a late filing surcharge which is based on the final tax liability for the year in question.
On top of this the Revenue Commissioners will charge you interest on what you owe, and late filing of tax returns can also increase your risk of being selected for a Revenue Audit.
5. Less stress and more time to spend as you wish
Getting everything together for your tax return takes time. If you leave everything until the last minute, it will be undoubtably be stressful. That sense of panic when you are still looking for the receipts as the deadline looms over your head is something you can avoid if you fill early. As the October mid-term break rolls it would be nice to be able to spend it as you wish. If you have your tax return done early you can focus on scary costumes and trick or treat rather than invoices and receipts.
How TaxAssist Accountants can help
TaxAssist Accountants are available right now to help you complete your tax return early so you know how much tax you need to pay and by when. If you are due a refund, it makes perfect sense to receive this as soon as possible. We are working with many self-employed individuals and business owners around the country who have already filed theirs and we are ready to help you too. Contact us today to make that first step.
Date published 25 May 2022 | Last updated 12 Jun 2023This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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