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We know from experience that some people like to get up early, make a coffee and read up on the news headlines, that’s if they haven’t done so online already before dawn breaks! These are the same people who are excited to file their taxes, can’t wait until 6th April each year to do so, literally buzzing with excitement, counting down the days to complete tax return organisers to complete their tax returns.
There are others of course, who are natural procrastinators, with piles of action to-do lists, newspapers left for reading that somehow remain unread... these same people who love the adrenaline of the ‘last minute rush’ to file and pay their taxes, unfortunately sometimes miss the January 31 deadline for UK tax, or even worse, miss the December 31 deadline to pay the UK taxes to get the foreign tax credit in their US tax return for relevant income assessable in UK and US tax regimes. They have no idea what they are missing out on. Some of these are suggested as follows:
Advantages for filing early:
As with life-style decisions, those who get up early catch the worm – or the best deal in town! More time to spend with your tax adviser equals better value!
Accountants should love spending time with their clients when they need them:
• On issues that concern you and your family, which a chat or meeting can help to resolve. • Optimising tax reliefs on pension savings so you can restrict pension savings charges. • Ensuring you don’t exceed savings allowances on interest income that could be split between spouses or other family members. • Choosing investments that utilise the £2,000 dividend allowance. • Planning to utilise the £12,000 Capital Gains Annual Exemption. • Making remittances of income worthwhile subject to allowances. • Getting your salary paid offshore if you have recently arrived in the UK and have foreign work days. • Charitable giving Gift Aid claims for tax relief. • Lifetime gifting to children, family and other beneficiaries.
There are a myriad of options when you plan ahead. These often save you stress and tax!
‘Tax Therapy’ services can reach those areas that need more attention, offering time to listen and regenerate and help you to feel comfortable with your tax affairs.
So be an ‘early bird’ and don't leave it to an accountant or bookkeeper who leave you to the last minute.
Gabriella Alexander-Passe is UK Tax Therapist at Chartered Accountants Alexander-Passe & Co.