Reasons to file your tax return early

Have you received notification from the Revenue Commissioners to file your tax return by October2014? Every year, hundreds of thousands people leave it until the last minute to file their income tax return causing stress, worry and panic!  We've come up with a number of great reasons to file your return early:

1. You don’t need to pay the tax owed until the tax deadline

Even if you file your tax return early with Revenue, you are only obliged to pay any tax liability by the normal due dates of 13^th of November 2014.

2. Tax refunds are accelerated

Why wait to collect your tax refund?  Refunds can often be processed far slower around tax deadline as Revenue staff and systems can be overwhelmed at this time. If you file early you will get your refund quicker!

Under or over payments of tax are more common than we think. They very often arise for employees or directors, where Revenue/Payroll Staff have made errors with their tax credits. Subcontractors who have suffered Relevant Contracts Tax (RCT) during the year are also often due a refund. 

3. You have time to plan for any tax owed

Filing your tax return and calculating any tax liability arising, allows you the time to start budgeting and managing your cashflow ahead of time and saves you the last minute scramble for enough cash to pay your bill.

4. Buy yourself some time

If your affairs have changed this year, then preparing your tax return in good time ensures you have the space to think about any tax planning/saving opportunities available to you.

Not rushing to complete your return should also reduce the risk of errors being made.  It also allows time for bank statements and any other financial documents you may need to file the return to be collated.

5. Not missing the tax return deadline

Perhaps the biggest incentive of all! If you file your tax return late, you could be subject to a surcharge rising to 10% of your liability. A daily interest rate can also be applied by Revenue for unpaid tax.

 

How TaxAssist Accountants can help

We are available right now to help you complete your tax return early so you know how much tax you need to pay and by when.  If you are due a refund then it makes perfect sense to receive this as soon as possible.  We're

Date published 13 Aug 2014

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.