At Centralis we encourage our clients to submit their tax returns well in advance of the 31 January deadline. Not only does this avoid the January rush and give us and our clients peace of mind, it helps you to plan your cash flow.
For example, if you are due a tax refund then the earlier you get the tax return submitted, the sooner you can receive your tax refund.
If you have a payment on account due in July and you think your profits for the tax year may be less than the previous year, filing your accounts and completing your tax return now could mean you may not need to pay the full payment on account in July. A real advantage for many of our Private Clients is that Centralis also acts for the LLP in which they are members. As the LLPs we act for are normally regulated by the FCA, the LLPs will require audits to be completed within 4 months of the year end (for example, December year ends will be completed in April). Our corporate tax team therefore will be able to calculate, shortly after the audit, the relevant profit allocation figures to include in the member's personal tax return. As such, our Private Clients are able to plan ahead and determine whether a reduced payment on account is needed.
Filing your tax return early does not mean you have to pay the tax early. You can still make your payments up to the 31 January deadline. However, it does mean that you will know how much you will need to pay and can work this into your cash flow over the months leading up to when the payment is due.
Early submission also helped some of our clients with their mortgage applications. If you are planning to take out a mortgage or are looking at remortgaging a property, lenders normally ask for sight of your tax returns. Early submission of your tax return can help provide the backdated financial information needed for the mortgage or finance application.
If you would like to know more about our Private Client tax services, please contact Stuart Gartery.