In a bid to streamline tax processes and alleviate last-minute filing stress, HM Revenue & Customs (HMRC) is calling upon landlords across the UK to submit their Self Assessment tax returns well ahead of the January deadline, citing numerous advantages associated with early filing.
According to a statement relayed to Landlord Today by HMRC, the tax authority underscores the importance of prompt submission and offers guidelines to incentivize landlords to act swiftly.
A noticeable shift in behaviour is evident as an increasing number of taxpayers opt for early filing, breaking away from the tradition of submitting returns in the eleventh hour every January. HMRC reports a noteworthy surge in early submissions, with figures from the previous tax year revealing that 194,000 individuals chose to file their returns between April and September 2023, marking a seven per cent upsurge compared to the corresponding period in 2022.
Taxpayers have the liberty to initiate the submission process for their 2023/24 tax year as early as April 6, 2024, the commencement date of the new fiscal year. HMRC divulges a substantial rise in the count of individuals opting to file their tax returns on the inaugural day of the tax year, a figure that has more than doubled since 2018. Last year alone, over 77,500 taxpayers submitted their returns on April 6, 2023, indicating a trend expected to have gained further momentum this year.
The enticement for early filing extends beyond mere adherence to deadlines, with thousands of individuals reaping the financial rewards associated with prompt submission. HMRC delineates several benefits linked to filing tax returns early, including:
- Peace of Mind: Early submission alleviates the stress of last-minute filing, offering taxpayers peace of mind.
- Budget Planning: Timely filing enables individuals to ascertain their tax liabilities early on, facilitating effective budgeting and potential instalment payments.
- Quicker Refunds: Early filers stand to receive refunds sooner, providing clarity on overpaid taxes and expediting the reimbursement process.
- Accessible Support: HMRC’s digital services offer user-friendly platforms for swift and efficient filing, complemented by dedicated helplines and webchat support for tailored assistance.
- Documentation for Financial Transactions: Early submission furnishes proof of income essential for mortgage applications, loan approvals, or benefit claims.
- Payment Flexibility: Filing early doesn’t necessitate early payments; taxpayers maintain the flexibility to settle their dues by the January 31 deadline.
- Payment Options: HMRC extends diverse payment avenues, including instalment schemes and time-to-pay arrangements, catering to individual financial constraints.
- Convenience in Payment: Eligible taxpayers filing before December’s end may opt to offset tax liabilities through their PAYE tax codes, streamlining the payment process.
The preferred mode for completing tax returns remains online, with over 97 per cent of taxpayers opting for this secure and expedient method through HMRC’s online services. Offering an array of functionalities, including submission, payment, refund claims, and account management, online platforms serve as comprehensive hubs for managing tax affairs efficiently.
For those who prefer delegation, HMRC allows individuals to appoint representatives, be it relatives, friends, or accredited accountants, to handle and submit tax returns on their behalf, provided proper notification is furnished to the tax authority.
As HMRC continues to advocate for early submission, taxpayers are encouraged to seize the opportunity to streamline their tax obligations and avail themselves of the accompanying financial benefits.