Early Bird Tax Benefits
The early bird allegedly catches the worm. And there is definitely merit in applying this old adage to meeting your accounts and tax filing obligations.
At GWA, we understand the many competing demands on business owners and that you may be tempted to delay responding to our requests for information. However, leaving things until the last minute can cause undue stress, especially if your tax liability is unexpectedly large. As your trusted adviser, we prefer to work with you to maximise your tax planning opportunities and mitigate any nasty surprises.
Each spring we send a request to our tax clients outlining the information we need to complete their tax returns. Our accounts clients receive a similar request annually, usually a couple of months after the accounting period year end. Whilst we continue to remind you throughout the year, supplying us with the information as early as possible could benefit you in many ways. These include:
- being able to identify and take advantage of tax planning opportunities
- any potential issues or queries can be identified and dealt with earlier and easier
- it enables you to plan and budget for your tax liability
- payments on account can potentially be reduced where profits are expected to reduce
- if you submit your tax return early and are due a tax repayment, your refund will be processed sooner, helping cash flow
- peace of mind knowing that you have met your obligations well ahead of the deadline.
Some people delay filing their tax return before the 31 January deadline as they mistakenly believe that they will have to pay any tax owed earlier. This is not the case – your tax payment dates remain the same, regardless of when you file your return.
We appreciate and acknowledge that our clients are extremely busy. However, by supplying your information sooner rather than later, you could help your cash flow in the short term and save money in the long term.
Remember that ‘The early bird catches the worm’ is generally positive advice … unless of course you’re a worm!