Happy New Year. We hope all our clients and friends had a fantastic Christmas and we hope 2016 will be a year of prosperity for all.
As we all know January is tax return season and is usually our busiest month as we try to tackle all the last minute panics and get everyone’s returns filed on time. Truth be told our track record is pretty good and in the last few years our failure to file tax returns have usually been when we haven’t received the information before 31st January and although we are good, telepathy is not our strongest point and we don’t believe in a fictional tax return!
As well as trying to give us a quieter January so we can dwell on our post-Christmas blues, there are a couple of reasons why we proactively chase (nag!!) our clients to get their tax return information in as early as possible
1) Forewarned is forearmed
After an expensive Christmas the last thing anyone wants is a nasty surprise in the form of a huge tax bill.
The earlier we get the information the earlier people can make plans to pay the tax or apply for the tax to be taken from their employment income, should this be possible.
2) Plan, plan, plan
If we receive someone’s tax return information on 31st January they are already very nearly at the end of the next tax year and if we spot an opportunity then there is often not a lot of time to put something in place before the current tax year ends. A simple example of this being, we have seen a lot of people have their PAYE codes changed incorrectly and if this is not picked up early it can cause tax consequences for future years. Another thing to consider would be if a business is growing should the structure be changed ASAP to take advantage of lower tax rates, again this needs to be considered early to reduce the payment of tax.
3) Cash is king
If you have payments on account to make and your profits drop because of a lull in trade or purchase of machinery etc. then these can be amended and the cash flow burden can be reduced.
We want our job as Accountants to be one of looking forward and helping our clients, not just ensuring tax returns are filed on time. If you are on the
naughty list and haven’t yet completed your return, let us have the information as soon as possible and consider how next year could be different…it may just save you some money!
Rotherham Taylor Chartered Accountants 