You may be wondering why you should file your 2020-21 tax return early. It’s the time of year when many people start to think about their taxes. The deadline for the 2021 tax return season is the 31st of January 2022. 31st of October 2021 if you wish to file a paper tax return.
Well, there are three good reasons as to why you should file your tax returns early.
Firstly, it’s about certainty, having that clarity of knowing how much tax you're likely to have to pay by the end of January 2022. Filing early lets you see if you're likely to get any tax refunds. It's worth filing early so that you can get a clearer picture of how much money will be coming in and out. That way, if there are any changes or surprises on your return, you'll have more time to plan for them.
Putting money aside for your taxes?
If you find that you haven't quite put enough money aside to pay for your taxes, panic not. You have time to plan, to talk to HMRC debt management. There is the option of arranging a time to pay, exploring options for paying you tax. It's worth noting that the payment date for 2021-22 is 31-Jan-2022, even if your tax return has been submitted.
Moreover, knowing what your tax bill is gives you a target money pot to aim for. Paying off your tax bill will help relieve some of the stress and anxiety of having unpaid bills hanging over you.
Ideally you have been budgeting for your tax bill. Using our quick and easy to use tax calculator will help you figure out your budget. them where you can pay your tax and without putting too much undue stress on yourself.
Lastly, there is that tremendous positive and cathartic feeling you get when you file your tax returns early. The positive affect on your well-being, knowing that's one task, that we most of us dread, is out the way.
Information you need for your tax return
Firstly, the first step in preparing your tax return is gathering together the information you need. I have put together a list, a checklist of what you may need. I have also included a list of typical self-employed expenses.
What is your money mindset?
There is an incredible range of views and reactions that people in business have to Money fascinates me. I don't know all the reasons why, but I need your help to find out why. Secondly, this is more than just curiosity for curiosity’s sake. Understanding what lies behind our attitudes consequently helps us in business and in life.
In short, the truth is though that the best way to really understand is to ask, and I need your help.
I'd really appreciate it if you could help me get a better understanding. I am happy to share those findings.
I hope you get a good feeling and can see why you should file your 2020-21 tax return early.
Get in touch with us to see how we can help you with getting your tax return filed. For more business and finance , news, advice and tips, don’t forget to watch our weekly broadcasts, listen to our weekly podcast I Hate Numbers.
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