An increasing number of people are filing their Self Assessment tax returns early.
HM Revenue & Customs have reported that nearly 66,500 filed their 2021 to 2022 return on the first day of the new tax year on 6 April 2022.
This number equates to 30,000 more people filing early compared to 2018, which HMRC says could help taxpayers benefit from:
• An early rebate for any overpaid tax from the 2021 to 2022 tax year.
• Spreading the cost via direct debit. They can set up a Budget Payment Plan service with HMRC to set up weekly or monthly direct debit payments.
Customers have been able to file their 2021 to 2022 Self Assessment tax return since 6 April. And while many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.
Customers can file their tax returns online, but tax matters can be complicated and it would be a wise move to make sure your accountant does this on your behalf.
What happens if I get it wrong?
Your tax return must be accurate in terms of figures, dates, your status and any relief you are eligible for.
Get it wrong or miss the filing deadline and you could incur penalties, which will increase if you delay in correcting the situation. That is where the accountant can take the stress away.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “You don’t need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search ‘Self Assessment’ on GOV.UK to get started.”
Earnings and payments received during the pandemic will need to be reported on the tax return meaning customers must declare any grants or payments from the COVID-19 support schemes received between 6 April 2021 and 5 April 2022 as these are taxable.
For help and advice on filing returns and other tax matters, contact our expert team today.