Filing an income tax return is one of the easiest way to get a comfortable loan applications. So it is advised to file your self assessment tax return service timely before the last minute for reducing your stress and late penalties or forfeit. For every tax payer, it is important to note the self assessment tax payment date. It is 31 January whereas no fixed date for the tax return submission.
In this article, you will learn how to file a self assessment tax return early and its benefits. Read the complete article.
When can you file self assessment tax return?
Tax payers can pay their tax return till the 31 January. However, it seems to be a long time, yet an early self assessment tax return helps to make your financial plannings.
It is important to note that a self-assessment tax return can be filed early from the first day of a new tax year which starts from 6the of April each year. Let us understand it with an example – the 2023/24 tax year ends on 5 April 2024. Hence, 2023/24 tax return can be filed from 6th April 2024.
According to HMRC reports, circa 778,000 taxpayers filed their self assessment tax returns via online mode on the last day for the 31st January 2023. Adding to this, approximately 33,000 individuals has submitted their online tax return in the last hour just before the deadline. This is significantly high on the previous year.
According to HMRC reports, circa 778,000 taxpayers filed their self assessment tax returns via online mode on the last day for the 31st January 2023. Adding to this, approximately 33,000 individuals has submitted their online tax return in the last hour just before the deadline. This is significantly high on the previous year.
On the other side, completing your tax returns before the deadlines, fortify you form any sort of mistakes and burden of last minute of submission.
When are Self Assessment Tax payments due?
The due date for self assessment tax payments is always 31 January following the year-end. Take an example – for the 2022/23 tax year that ends on 5 April 2023, the last date for paying any sort of your self assessment tax liability (and Class 4 NIC) would be 31 January 2024.
Benefits of early filing a tax return
- Relaxation of mind that you obtain on filing your tax return on time and are aware of your future tax liability
- Excellent financial planning for the coming year by understanding your financial status, and dues for an improved cash flow
- Displaying a due refund from your tax return, you will get this refund sooner
- Safeguarding yourself from any sort of late fines or penalties
- You get adequate time to plan how to pay your tax bills as it is not due at the same time of filing your return
How to Reduce tax payments by filing early self assessment tax returns?
You can directly ask HMRC to lower payments on your accounts, if you are aware that your tax bill is comparatively lower than the previous year. This will reduce the amount you will be paying for the earlier year.
If you have formerly paid the payment for a specific month and the tax due is lower than the earlier year, you can simply request for a refund or a partial refund. The subsequent payment due on 31 January will be lower as well. In some cases, you do not required to make an another payment