Wisteria Accountants

Like may professionals who provide personal tax advice, we are used to the way that the tax world works and the way in which individuals deal with their income tax returns.

All taxpayers who need to prepare a self assessment tax return will by now have received the HMRC notice that they will need to complete a return covering the 2010/2011 tax year.  As usual, this return will need to provide the details of all income and gains for an individual covering the period from 6 April 2010 to 5 April 2011.

The first question asked by most clients is ‘when is the deadline for the return to be submitted?’  Strictly, the tax return deadline is 31^st January, although paper returns must be submitted by 31^st October.  This answer, rather unfortunately, tends to encourage most individuals to leave this for another day.  We are of course all busy people and as we have so long to do it, it can wait.  Of course far too often, it does wait and wait and wait.  In the end, many individuals leave it to the last few weeks to get their return prepared or to send the information to their adviser.

There are however a number of worthwhile benefits to dealing with your return earlier, as follows:

• Individuals who are entitled to a tax repayment will get their refund significantly earlier by completing their tax return sooner.
• If you do owe tax, you will have a longer time to prepare and plan for the tax payment.  Submitting your tax return earlier does not mean that you will have to pay earlier!
• If you use a tax adviser, they are likely to be less busy with returns prior to November and therefore are likely to be able to provide an even better service to you earlier in the year.  This often means that more tax saving opportunities can be highlighted.
• Leaving things until the last minute can often mean that you make mistakes, possibly increasing your chances of a fine or penalty.
• Leaving your return to the last minutes may cause you additional stress as well as your tax adviser.
• Trying to complete your return very close to the deadline often leads to you running out of time and therefore incurring a penalty of at least £100.

Perhaps it is time to make a resolution for this year – I will deal with my tax return before the end of the summer!

If you need help with your personal tax return or are looking for tax advice in general, please contact a member of the tax department on 0208 952 0140 or info@wisteria.co.uk