We are already two months into the 2013-14 tax year and those readers who need to file a tax return for the year ending 5 April 2013 have until 31 January 2014 to do so if filing online. In this article we will explain why it is advisable to gather your various P60s and other tax information together and bring them in so we can compute your liability for 2012-13.
There are a number of compelling reasons for working through this process as quickly as you can:
- As part of the tax return preparation process we will work out your total tax liability for 2012-13 and any balance of tax due for this year. Any tax liability will need to be paid on or before 31 January 2014, so working out the underpayment early means you have more time to save for any tax due.
- Conversely, if you believe you have overpaid tax for 2012-13 we can file your return and obtain any refund due back to you.
- The actual tax liability for 2012-13 also forms the basis for payments on account in January and July 2014. Again, the earlier these amounts are known, the longer you will have to save for payments due.
- If your Self Assessment tax liability for 2012-13 is lower than for 2011-12 we may be able to reduce the payment on accounts due in July to avoid you paying tax now only to obtain a refund later; however, to do this we will need to prepare your 2012-13 return by about the middle of July.
- Although most of the tax planning opportunities to reduce tax due for 2012-13 have passed, there is one significant planning option that can be actioned up to the date you file the 2013 return. We have provided more information in the article titled ‘Re-opening the stable door: using Gift Aid donations’.