File Your Tax Return Early

Despite the Revenue Commissioners best endeavours, taxpayers often put off preparing their tax return until the very last minute. However, this really doesn’t leave very long to file and pay any tax owed and it’s easy to get distracted by last minute rushing.

In this article, we highlight the main advantages of filing tax returns early and persuade taxpayers not to drag their heels when it comes to dealing with their affairs.

 

 Tax payments aren’t accelerated

Even if you file your tax return early with Revenue, you are only obliged to pay any tax liability by the normal due dates:

• 31st October 2013

...But refunds are accelerated

If you file your tax return before the filing deadline, you should receive any tax refund you are due fairly soon after you’ve submitted it; Revenue do not wait until 31st October to pay you. Therefore, if you suspect you have overpaid tax and are due a refund, you should really prepare your tax return as soon as possible so that you can get the cash earning interest in your bank account!

Cash flow management

Filing your tax return and calculating any tax liability arising, allows you the time to start saving for the bill and to manage your cash flow. If you pay your tax bill late, Revenue will charge you interest.

Time

If your affairs have changed this year and you have say, losses or a significant amount of additional income, then preparing your return early can pay dividends because it gives you the time to consider any tax planning opportunities which could lead to tax savings.

Furthermore, having plenty of time to prepare your return reduces the risk of errors being made, because you aren’t rushing to get it finished. It also allows time for bank statements to be collected and any other financial documents you may need to file the return.

Accountants

If you plan to use an accountant to deal with your affairs, you should be aware that some firms may charge you a premium if you deliver your records to them close to the deadline. This is due to the fact that many accounting firms need to pay overtime to their staff in order to complete the return in time.

Contacting the Revenue Commissioners

Trying to get hold of Revenue Commissioners can be pretty difficult at times, but it’s even more difficult around the tax return deadline. Avoid leaving your tax affairs until October or later; just in case you need to speak with the department and can’t get through.

If you are due a tax refund, you’re also likely to experience a longer turnaround time if you file your return during their peak times.

We can help

Your TaxAssist Accountant gives you peace of mind that your affairs will be handled accurately and in a timely fashion, which leaves you to concentrate on your business. If you need any help completing your tax return contact us today.

Date published 12 Aug 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.