Christmas comes but once a year

I started my Christmas shopping last week, in October!! Only just in October, I grant you, but nonetheless in October.  Now this may be no big deal to some people, in fact I know one (smug) person who has already finished (and wrapped) her Christmas shopping, but I am usually panic buying the week before Christmas for those of my loved ones who are, at best, difficult to buy for (at worst, downright awkward) and for whom I have procrastinated the gift buying process until it can be put off no longer.

 

 

Now we all know that Christmas is on 25^th December.  It has always been on 25^th December and I have known that it was coming up on the 25^th December this year since before 25^th December last year.  So why is it always a last minute rush to get organised?  The truth is that with better planning, not only could I reduce my stress levels, but also quite possibly reduce my Christmas spending – after all, with the whole realm of internet shopping available I would be less likely to plump for an extravagant gift just so that I could go home, or at least be able to shop around for a better price on said extravagant gift.

 

The 31^st January is the deadline for filing your tax return and paying any outstanding tax due.  It is the same deadline every year and yet, as an accountant, I can give testament to the fact that this deadline seems to come as a surprise to some people every year.

 

There is, in fact, nothing to be gained from leaving your tax return until the last minute – even if you submit your return in May, the tax due will not need to be paid any earlier, but by being well organised and having your books and records in order you can ensure that you claim all of the expenses and allowances available with plenty of time to peruse the HRMC website and watch their YouTube videos (which I can recommend) for any help needed thus saving accountancy fees. 

 

Those who leave it until the last minute, however, will often miss some expenses where unrecorded receipts have gone astray, may miss out on allowances without the time to properly investigate what is available to them and may even struggle to find an accountant to help them as many firms struggle to hit the deadlines for their existing last minute clients without adding to their already heavy workload with new ones.  Of course if you don’t manage to hit the deadline, there are late filing fees to pay which is just the start of the interest and penalties that HMRC can levy.

 

So when's the best time to do your tax return?  Well how about now, after all who wants to be doing their tax return over the festive period or adding to the hangover of January?  And just a note for your diary - next year's tax return deadline will also be 31^st January.