As a content creator, your time is valuable, between creating content, engaging with your audience, and managing brand collaborations, the last thing you need is the added stress of tax. However, filing your tax return early can offer numerous benefits that can make your life easier and even enhance your financial stability.
Unsurprisingly, 31 January is the busiest day for filing your tax returns with HMRC. Last year, 778,068 customers completed it on the 31 January 2024. Of those that submitted in the final hours:
- 61,549 (8%) customers filed between 4.00pm and 4.59pm (the peak hour for filing).
- 32,958 (4%) customers filed between 11.00pm and 11.59pm
You do not want to be one of these taxpayers!
Here’s why getting ahead of your taxes is a smart move:
1. Minimise risk of penalties
By filing your tax return early, you avoid the potential for an unnecessary late filling penalty. HMRC charge a £100 fixed penalty if filed late. 30 days late and you’ll pay an additional 5% of the tax due and 3 months late, you’ll incur a daily penalty of £10, up to 90 days (max £900). After this, penalties ramp up significantly if paid more than 6 months late.
2. Focus on creating content
Getting your taxes done early reduces last-minute stress and the pressure of looming deadlines. You can focus on creating content and engaging with your audience instead of worrying about taxes.
3. More Time to Pay
If you owe tax, filing early gives you more time to arrange payments. While the payment deadline remains the same, you have longer to budget for any taxes due, helping you manage your cash flow better.
4. Claiming Tax Benefits
Early filing gives you ample time to ensure you’re claiming all eligible tax deductions and allowances. This includes expenses related to your influencer activities which reduce your tax bill.
5. Accurate Returns
Rushing at the last minute can lead to errors. Filing early gives you time to ensure your return is accurate, reducing the risk of mistake, which could trigger inquiries an enquiry from HMRC.
6. Planning for the Next Year
Completing your taxes early provides a clearer picture of your financial situation, aiding in better financial planning for your brand and business growth in the upcoming year. Should you wish to get ahead of the game with your financial planning, get in contact with your financial advisor through StarBox.
7. Professional Assistance Availability
HMRC and accountants tend to be very busy in January, due to the influx of last-minute returns. Therefore, by completing early you’ll likely have better access to help, support, and advice. This can be especially beneficial for complex returns needing expert attention, ensuring you don’t miss out on influencer-specific deductions.
8. Interest rates for late payment
If tax is not paid by the deadline, HMRC apply interest on the outstanding balance. The current interest rate for late payment is 7.75%..
Should you be in a position where you have overpaid tax throughout the year, filing your tax return early allows you to receive a rebate sooner. HMRC processes early returns quicker, so you get your money faster, ideal for reinvesting in your brand or content creation.
10. Planning your payment on accounts
Filing your self-assessment tax return early in the UK is especially advantageous for managing and potentially reducing payments on account. By submitting your return early, you can assess your tax liability for the year, allowing you to apply to reduce your payments on account if your income has decreased. This proactive approach can prevent overpayment and improve cash flow, ensuring that you are not tying up unnecessary funds in advance payments.
Get in touch with us
Filing your tax return early can bring numerous advantages, from faster refunds to reduced stress and better financial planning. It’s a smart move to ensure a smoother tax season, allowing you to focus on what you do best—creating amazing content and growing your influence.
For expert assistance in managing your tax returns, contact us at StarBox. We are equipped with the knowledge and experience to handle all your tax-related enquiries, ensuring you receive the best advice and support tailored to your unique influencer needs.