How can Landlords benefit from filing taxes early?

The official deadline for filing your self-assessment tax returns for the year ending 5^th April 2024 is the 31^{st of} January 2025. However, there are many reasons to consider filing your taxes months before this date.

First, understanding your tax liability early in the year can give you a clear picture of your profit for the tax year, giving you a clear indicator of the profitability of your investment. This then gives you a lot of time to budget and plan for the next tax year and set aside the sufficient funds to cover your tax bill.

A second important point is that filing early allows for more time to spot and correct any errors made in your tax return, giving you plenty of time to respond to any queries from HMRC or your accountants without the stress of a looming deadline. As well as this, when filing early, you eliminate the risk of any penalties from missing the filing deadline, where even a single day can incur penalties.

There is also the benefit of peace of mind, by knowing that you’ve completed your tax filing for the year, you don’t have to worry when others are scrambling to gather all their paperwork and trying to get their self-assessment submitted before the January deadline.

Another important thing to note is that by completing your tax filing early, you will have the time and opportunity to plan for new projects with a detailed understanding of the performance of your property portfolio. Having an excellent understanding of your financial position will undoubtedly help make good investment choices.

One final important benefit of filing early is that you can spread the costs of your tax bill with HMRC by paying monthly before the tax deadline, which means that the sooner you file your taxes, the more you can soften the blow of a lump sum payment at the end of January.

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