We are already two months into the 2013-14 tax year and those readers who need to file a tax return for the year ending 5 April 2013 have until 31 January 2014 to do so if filing online.
In this article we will explain why it is advisable to gather your various P60s and other tax information together and bring them in so we can compute your liability for 2012-13. There are a number of compelling reasons for working through this process as quickly as you can.
- As part of the tax return preparation process we will work out your total tax liability for 2012-13 and any balance of tax unpaid for this year. Unpaid tax will need to be paid on or before 31 January 2014 so working out the underpayment early means you have more time to save for any tax due.
- Conversely, if you have overpaid tax for 2012-13 we can file your return and obtain a refund for you.
- The actual tax liability for 2012-13 also forms the basis for payments on account in January and July 2014. Again, the earlier these amounts are known, the longer you will have to save for payments due.
- If your Self Assessment tax liability for 2012-13 is lower than for 2011-12 we may be able to reduce the payment on account due in July to avoid you paying tax and obtaining a refund later. However, to do this we will need to prepare your 2013 return by about the middle of July.
- Although most of the tax planning opportunities to reduce tax due for 2012-13 have passed, there is one significant planning option that can be actioned up to the date you file the 2013 return. We have provided more information on this in the following article.
Hopefully, you can now see how you might benefit from getting your tax return records to us sooner rather than later. It pays to be informed.