Every year when October rolls around we have clients panicking that the deadline for their tax return is fast approaching and they’re not ready. This year why not file early and avoid that last-minute scramble to get everything together?
There are plenty of reasons to file early and we have outlined our top 5 reasons here:
1. Tax refunds are accelerated
Why wait to receive your tax refund? Once you file your tax return, your refund should be processed soon after. That means the money could be sat in your bank account earning interest sooner. 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 has 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.
2. More time with your accountant
The closer we get to the 31 October deadline the busier your accountant gets. 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. Bank statements and any other financial documents can be examined thoroughly for any additional tax-deductible expenses which may reduce your tax bill.
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 the time to start budgeting and managing your cashflow. If you have a large tax bill you have time to look at your options, talk to the bank, chase outstanding invoices and talk 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. More time to spend with your family
When the October mid-term break rolls you will probably want to spend it with your children. 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.