April 6th will be the start of a new Tax Year — and you can file your Self-Assessment Tax Return right away, if you want. Maybe you’re one of the super-organised people who gets it all wrapped up before we reach May. If so, you’re an exception.
Most people tend to put it off. Some get it done over the summer, which isn’t a problem, but a large proportion wait until the deadline at the end of January is looming large. At least half a million miss the cut-off each year, with tens of thousands just getting in under the wire during the last hour of the 31st.
So, what makes people put off completing their Tax Return? And are you one of those?
“There’s Plenty of Time”
I get it. On the 6th of April, the deadline for filing your tax return is nearly ten months away, so it doesn’t loom very large on your to-do list. There’s loads to do, on the other hand, that can’t be left till next year, and it’s only natural to focus on that.
It’s a bit like being at school again and having homework for over the weekend. Do you sit down on Friday evening and get it done, instead of diving straight into your break? Or do you leave it till Sunday, and have to rush to get it finished — or maybe don’t get it finished at all?
We all know which is the sensible choice — but human beings aren’t best known for making the sensible option, when we can be enjoying ourselves, instead.
“I Don’t Want to Think About It”
In most cases, the end result of filing your Tax Return is that you’re going to be paying out money. And, what’s worse, seeing no obvious return for that expense. Of course, it’s possible that you might end up with a rebate — but probably not!
By contrast, most of your other activities within your business involve either getting something worthwhile for what you spend (good) or else being paid (even better). It’s human nature to want to focus your attention on activities with attractive outcomes, rather than on those we don’t enjoy.
Of course, as we all know when we think rationally, ignoring something unpleasant doesn’t make it go away, and will very often make matters worse. The problem is that we’re not normally thinking rationally when we put off tackling something unwelcome — like completing our Tax Return.
“I Don’t Have Time”
Running your own business is a full-time job — especially if you’re stuck in the trap of trying to do everything yourself. Marketing, prospecting for clients, networking, admin, not to mention doing the actual work — it all adds up.
By comparison, a task that isn’t urgent, and that you don’t really want to do anyway, isn’t going to stand much chance. You can do it when you’re not so busy but guess what — that day isn’t going to come. Your Tax Return won’t be any easier to fit in if you leave it till January.
Why the Time to Do Your Tax Return Is Right Away
There are plenty of reasons why it’s a good idea to get your Tax Return done as early as you reasonably can:
- The earlier you do it, the easier it is to fit it into your busy schedule — even if you just put aside half an hour each week, it won’t take long before you’re ready to submit.
- The earlier you get your tax bill, the more time you have to plan for it. Remember, you don’t have to pay till January, so you can put money aside each month. And, if you have a rebate, you can celebrate earlier.
- The longer you leave your Tax Return, the more stressful it becomes, and that stress can impact both how you run your business and how you enjoy your life. Filing early is good for your mental health.
You can make your Tax Return far easier for yourself if you’re working with a great Accountant who can take most of that stress away from you and help you stay on track. Give Grace Certified Accountants a call and let us help you become one those people who’ll be laughing next January 😊.