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Self-Assessment Tax Return

Why you should File your Self-Assessment Tax Return right away

There are lots of perks to being self-employed, from flexible working hours to being your own boss. You might even be able to work from home in the comfort of your own bed. There are lots of perks to being self-employed, from flexible working hours to being your own boss. You might even be able to work from home in the comfort of your own bed.

One of the biggest drawbacks for self-employed people is filing their self-assessment tax return. Here at Bidwell Accountancy we are here to help. Below are 6 points as to why we believe you should file your self-assessment right away.

1.Money in the Bank

If you leave your Self-Assessment until just before the January 31st deadline, then you run the risk of receiving an unexpectedly high tax bill, with not enough savings put aside to comfortably pay it. Aside from being out of pocket, you’ll be liable for a £100 fine if you’re even a day late. The earlier you deal with your taxes, the more time you’ll have to budget for them. January can often be a month where the purse strings are especially tight, so do your sanity (and your bank account) a favour, and get that return filed ASAP.

2. All the time in the world

Completing your tax return requires you to get an awful lot of figures, reports and certificates together. Leaving this to the last minute runs the risk of you not being able to find some of these important documents, and potentially having to file late. On top of this, HMRC registration can take up to 10 days to provide you with your UTR confirmation code, so it’s in your interest to get that paperwork ready nice and early. This way, there will be no last-minute scrabbling for files, and you can get things done in your own sweet time.

3. The joy of being organised 

As the best-selling book by Marie Kondo testifies, there is joy to be found in being utterly and completely organised. If you can check Self-Assessment off your list sooner, rather than later, it will be a huge weight off your shoulders. No longer will you spend the year dreading digging out those old documents, as it will be already done and dusted. Along with the feeling of sweet relief, you will now have freedom to fully focus on what’s really important – your business.

4. Freedom to enjoy the festive season

No-one wants taxes to be looming in the back of their mind while they’re tucking into turkey. The annual January 31st deadline for Self-Assessment submission leaves a lot of freelancers fretting over the Christmas holiday. Get your taxes sorted well before winter, and you’ll be free to focus on much more important things, like eating your body weight in chocolate.

5. Time to find an accountant 

While you don’t legally require an accountant to help you file your Self-Assessment, it can often be a good idea to let an accountant check over your work. By letting Bidwell Accountancy take a look you can make sure that you haven’t missed anything out.

6. Self-Assessment smugness

The final – and most important – reason of all to file your Self-Assessment now, is the complete and utter smugness you can radiate from the moment you’ve filed. While your self-employed pals are complaining that they’re going to be bogged down in their books for the next few months, you can hit them with a ‘Self-Assessment? Oh, I filed that months ago…’.