When to Submit 2020-2021 Self-Assessment Tax Return
In most countries, the tax year starts on 1 January. However, you can submit your tax return as soon as the next tax year begins. There are several benefits to doing so. This guide presents several reasons why.
How Early to Submit Tax Return in the UK
In the United Kingdom, the tax year starts on the 6 April and ends on the 5 April the following year. Many people in the UK start their tax returns before the end of the tax year.
There are several reasons why you should submit your tax return as soon as possible.
- You will get an early start on your tax return. It is quicker to complete a tax return at the beginning of the tax year.
- You may be eligible for additional tax reliefs. For example, you may qualify for the personal allowance if you submit your tax return at least three months before the end of the tax year.
- You can use the self-assessment tax return to claim non-taxable benefits. If you file your tax return by the end of August, you can apply for child benefits. If you file your tax return in October, you may be eligible for cold weather and winter fuel payments.
Why Should You Submit Your Tax Return Early?
As a taxpayer, you want to submit your tax return as soon as possible. This is because your income, deductions, and credits may be affected by events that occurred in the previous tax year. For example, your income may be reduced by expenses not deductible in the current tax year.
Similarly, you may want to claim tax reliefs in the previous tax year even if you do not need to claim them in the next tax year. For example, you may not need to claim tax relief for your mortgage interest in the current tax year because you are better off with a personal allowance.
However, you want to claim tax relief for your mortgage interest in the previous tax year to keep your tax liability low. In this case, you should submit your tax return as early as possible.
Reasons to Submit Tax Return Early
This section lists several benefits of submitting your tax return early.
Benefit 1: You Can Get an Early Start on Your Tax Return
When you submit your tax return early, you can get an early start on your tax return.
Benefit 2: You Can Claim Tax Reliefs Early to Reduce Your Tax Liability
When you submit your tax return early, you can claim tax reliefs early to reduce your tax liability. For example, you may be able to claim tax relief for your mortgage interest even if you do not need to claim it in the next tax year.
Benefit 3: You Can Use a Tax Return to Claim Non-Taxable Benefits
When you submit your tax return early, you can use your tax return to claim non-taxable benefits. You can apply for Child Benefit, Cold Weather Payment, and Winter Fuel Payment in the UK.
Benefit 4: You Can Claim Tax Allowances Based on Your Circumstances
When you submit your tax return early, you can claim tax relief for your dependents, such as Child Benefit, Disability Living Allowance, Carer's Allowance, and Severe Disablement Allowance.
Conclusion
You should submit your tax return as early as possible so that you can claim tax allowances based on your circumstances. In addition to tax allowances based on your circumstances, you may also be able to claim tax reliefs early to reduce your tax liability.
1 to 1 Accountants is an accountancy firm based in the UK, serving small businesses, limited companies, partnerships, sole traders, eCommerce companies, freelancers, landlords and tradespeople. If you need help with your personal tax affairs, we’ve got you covered. Get in touch with us today and let us know how we can help!
