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Reasons To Not Leave Your Self Assessment Until January

Posted 29 Oct 15

With Christmas and the New Year approaching fast, many small business owners take their well-deserved break. You might want to slow down on your business plan, book a holiday destination for you and your loved ones and turn off your mobile phone.

Although the thought of a holiday break might tickle our stomachs with excitement, many business owners struggle to turn off entirely. You might be sitting at the table surrounded by your family and friends when a thought comes to your mind - how are you going to increase the sales next year? Have I closed all the deals? Do we need to take on more staff?

And, of course, the most irritating thought of them all, when will I have time to do the self assessment?

Since the deadline of self assessment comes early in the year (31 January), leaving it to the last minute can make the process extremely stressful, especially if you are a young company owner who has never filed before.

One of the best ways to deal with your self assessment is to file early. If you need more convincing, here are the reasons why.

1. Filing for Self Assessment Requires Preparation

Even though you can do a self assessment online, there are steps you need to take before can file. One of the tasks you will need to do is register, which can take a fortnight or much longer, depending on the the time you choose to do it.

There are two stages to the registration process and both of them require documents which prove your company’s incorporation and activity. You will need a Unique Taxpayer Reference (UTR), which is sent to you in the post. You can use this unique number to register for HMRC Online Services.

This will allow HMRC to send you a PIN number to access Online Services, where you can file your self assessment. Royal Mail and HMRC become extremely busy during the Christmas and New Year period, so the registration process might turn into a daunting experience.

2. HMRC Call Centres

One of the experiences we help our clients avoid is calling HMRC. With so many companies in the UK, the call centres are often overwhelmed and the queues long. If you do not have all the documents required ready when calling HMRC, you are simply wasting both your and their time.

The easiest and quickest way to prevent unnecessary stress and long waiting times is by allowing us to take care of your self assessment for you.

At Tawanda Accountants we make sure our clients are never overwhelmed with exhaustive paperwork, never miss a deadline and instead, can focus on an exciting experience which is running your own business.

3. You Might Be Eligible for a Tax Refund

Some business owners, especially those who mix self-employment with traditional employment, might be owed a tax refund from HMRC. If you believe you’ve overpaid your tax during the last year, HMRC will inform you about it once you file your self assessment.

Although getting your tax refund might take a few weeks to process, having new funds can be greatly beneficial for your business. Having your self assessment filed early enough, your company might enter the new year with an exciting, new business plan.

Filing your self assessment as early as you can and keeping track of your tax returns at all times allows you to plan your financial year much better and helps you create a perfect budget for your business.

Contact our experts at Tawanda Accountants today and we will take care of the process for you.