You will have more time
It’s as simple as that. This is especially important if it’s your first time preparing a tax return, as you will have to register with the HMRC first to submit everything online. This process involves the HMRC sending you an activation code through the post, which can take up to five to seven days.
Try to avoid waiting until December to do this – you don’t want your pin code getting lost within the masses of Christmas post.
You will avoid any fines
This will be a great motivator. If you submit your returns well before the January 31st submission date, you will not incur any fines for being late.
The fines include:
- £100 for a late submission.
- £10 per day until April 30th.
- £300 or 5% of the tax you owe (whichever is greater) if you still haven’t filed your return by April 30th.
- Another £300 or 5% of the tax you owe (whichever is greater) if you haven’t filed it within a year.
- If the HMRC believes you are intentionally delaying your submission, you can get fined up to 100% of the amount of tax owed.
You have a better chance that your figures will be accurate
When you’re rushing to meet a deadline you are far more likely to make mistakes. The longer you leave it, the more likely you are to forget to include something like interest on a bank account, or you may even enter the wrong figures.
Give yourself enough time to collate the correct figures without feeling like you are in a rush. Remember: if you discover any errors after you submit it before the deadline, you can always submit the revisions.