What would you say if you were offered a free holiday? For most people, the answer would be an emphatic yes. Who would pass up the opportunity to leave their troubles behind?
Here is the peculiar thing; while we jump at the opportunity to reduce stress by going on holiday, millions of UK business people voluntarily take on extra stress by leaving their tax returns until the last minute. No wonder so many of us are in need of a week of winter sun after the filing deadline!
There are so many reasons why it’s best to plan your tax return early. Here are some of the crucial ones:
- Get refunds now, pay tax later
The due dates for tax payments are fixed. Doing your tax return is not like settling a bill; you are submitting information, not paying off an account. On the other hand, refunds are usually paid by HMRC a few weeks after filing, so you may see a net benefit to filing an early return. Why let the government keep your overpayments longer than necessary?
- Plan your finances
Business expenditure should be as smooth as possible. If you know how much tax is due well in advance of the payment deadline, you can plan your finances in the best possible way. You may want to apply for short-term business finance, in which case you should give yourself enough time to make an informed decision about the best short-term business loans on the market.
- Better service from your accountant
Accountants get pretty busy in January with all those clients who wait until the last minute. Avoiding the busiest time of the year means that your accountant has the time to answer questions, suggest ways to improve your finances and generally give you better service.
- Business continuity
What happens if your business suffers a crisis in the weeks before the filing deadline, or if you go down with a bout of the flu? Delaying filing is risky for your business and could cause extra stress at a time when you could really do without it.
- Basking in the glow of your own efficiency
A not unimportant advantage of filing early is the feeling it gives you – the comforting feeling of having your business affairs under control. Just imagine the glorious feeling of smugness you will have when all your business associates are scrambling together their documents in January!
If you file your tax return early and find you need a short-term business loan to help bridge your finances, why not give Wesleyan Bank a call? We offer a range of unsecured commercial loans for SMEs and professionals. Alternatively, get an instant quote online to spread the cost over 6 or 12 monthly instalments.
For more information on our tax finance plans, follow this link