FreeAgent accountants

When the new tax year started last month, there were many self-employed individuals who were already breathing a sigh of relief. Why? Because 300,000 submitted their 2023/24 tax returns in the very first week.

These customers filed their tax return almost 10 months ahead of the deadline, HMRC has revealed.

Customers can file their Self-Assessment returns for the 2023 to 2024 tax year between 6th April 2024 and 31st January 2025, with many opting to wait right up until the deadline date.

While it might seem very keen to some, early submission of tax returns can have significant benefits. Almost 70,000 people filed their return on the opening day this year (6 April) and HMRC is encouraging people to do it early rather than leave it until January.

When you sign up with Gorilla Accounting, our packages all include FreeAgent accounting software, which can help streamline bookkeeping and make early tax submissions a breeze.

As FreeAgent accountants, it’s much easier for you to get ahead with your submission. With everything Making Tax Digital compliant, all your financial data is kept on the cloud-based software in one place, ready to pull out and submit whenever you like.

But why is early submission advantageous?

The Benefits of Early Tax Return Submission

By filing tax returns early, you can take your time to make sure everything is accurate and avoid any stress when it comes to filing last minute.

In recent years, HMRC has seen more and more customers file their tax returns early. In doing so, they found they could budget better, as customers can set up a payment plan and make monthly or weekly direct debit payments towards their next tax bill, and it also means that any refund of overpaid tax can be paid as soon as the return has been processed.

Peace of Mind

Submitting your tax return early means one less thing to worry about as the year progresses. It eliminates the last-minute scramble and the stress that comes with impending deadlines to complete your self-assessment. January is notoriously a busy month for many as they catch up after Christmas and make sure everything is in order for the year ahead, so it’s one less thing to worry about when you have so much to do already.

Avoidance of Penalties

Filing your tax return late can result in hefty penalties and interest charges. Many people do not realise just how much they can be fined if they don’t submit their tax return in time. By submitting early, you avoid these financial pitfalls entirely. If you do miss the deadline, you will get a late filing penalty of £100 if your tax return is up to 3 months late. You’ll have to pay more if it’s later, and you will also be charged interest on late payments.

Better Financial Planning

Knowing your tax liability early allows you to plan your finances better. You can budget for any tax payments due and avoid unexpected financial strain, especially if the nature of your income can often come in peaks as you complete different contracts and projects, rather than a steady income flow across the year.

Faster Refunds

If you’re due a tax refund, submitting your return early means you’ll receive your money sooner. This can provide a nice financial boost when you might need it most. Payday doesn’t always happen monthly when you’re self-employed, so a little bonus is always nice.

Access to Support

At Gorilla Accounting, your accountant is on hand with any questions or queries you may have, especially when it comes to support with HMRC. We work all year round with our clients and have a client service guarantee, meaning if you contact us before 3pm, we’ll get back to you the same day. In the early stages of the tax year when you’re ahead of everyone else, you’ll have even more time to go through things with your accountant should you need it.

Avoid Errors

Submitting early gives you plenty of time to identify and correct any errors in your return, as well as allowing your accountant to check that everything is not only correct, but you have maximised your take home pay too. It reduces the risk of HMRC inquiries and the associated stress for an incorrect submission.

When do I need to submit a tax return?

If you’re unsure whether you need to submit a tax return or not, the HMRC criteria is below. People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if:

–            they are a self-employed individual with an income over £1,000

–            they have received any untaxed income over £2,500

–            they are renting out one or more properties

–            they claim Child Benefit and they or their partner have an income above £50,000

–            they are a partner in a partnership

–            their taxable income earned from savings and investments is more than the £10,000 personal savings allowance

–            their taxable income earned from dividends is more than £10,000

–            they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold.

There are a few other occasions where you may need to deliver a tax return, which you can check using the government’s Self-Assessment Tax Return Checker here.

There are also instances where technically there may not be a reason to deliver a return, however HMRC can request that you do one if there is a “notice to file”. It is important to liaise with HMRC if a notice to file is in place.

If you’re still unsure about your tax implications, speak to a Gorilla Accountant today by calling us on 03301079670 or get an Instant Quote on our website.

Using FreeAgent Accountants to organise your finances

Using FreeAgent can transform your accounting process. As a cloud-based accounting software designed specifically for small businesses, freelancers, and self-employed individuals, it can revolutionise your bookkeeping and make early tax submission easier than ever.

At Gorilla Accounting, all of our packages come with FreeAgent included as standard, whether you’re a freelancer, sole trader, landlord or small business. Our expert accountants have access to your account so together, there is no paperwork that can be lost or confused. It’s fully digital, making your tax submissions fully MTD-compliant. Here are some of our highlights as FreeAgent accountants that we think you’ll love too:

Automated Bookkeeping

FreeAgent automates many of the repetitive tasks associated with bookkeeping that you hate to do. You can link your bank account to the software, and it will automatically import transactions. This saves you so much time, allowing you to focus on your work and your personal life without having to find time to keep your bookkeeping up to date. We all know that when you let jobs like this slide and don’t keep on top of it, it can be so difficult to get back on track. Plus, it reduces the risk of manual entry errors.

Real-Time Overview

With FreeAgent, you get a real-time view of your financial status so you don’t have to wait for payments to process overnight and a feed to be updated. It tracks income, expenses, and cash flow, providing you with up-to-date information at a glance. This transparency is crucial for making informed financial decisions there and then should you need to. It categorises expenses and matches them to bank transactions, streamlining the entire process and making it easy to see at a glance.

Easy Invoicing

Generating and managing invoices is straightforward with FreeAgent and you can create professional-looking invoices, send them to clients, and track payments. The software tracks the status of your invoices, sending automatic reminders to clients for overdue payments. This feature helps ensure timely payments, improving your cash flow management.

User-Friendly Interface

FreeAgent is so easy to use! As FreeAgent accountants, we want to be able to help our clients quickly and efficiently, which is why it works so well for everyone. The interface makes it accessible even for those with limited accounting knowledge as the software is designed to be user-friendly, with clear navigation and easy-to-understand features.

Access Anywhere

As a cloud-based solution, FreeAgent provides the flexibility to access your financial data anytime, anywhere. Whether you’re at the office, working from home, or on the go, you can manage your accounts from any device with an internet connection. When you’re self-employed, you don’t always have the ability to shut off at 5pm, so it’s great to be able to access 24/7 or if you travel a lot.

Working with FreeAgent Accountants

Managing finances is a critical aspect of running a business, especially for freelancers, small business owners, and the self-employed. With numerous accounting tools available, selecting the right software can significantly impact your business’s efficiency. At Gorilla, we take the hard work of choosing a platform away by providing you with FreeAgent as part of your accountancy package.

By adopting FreeAgent, you can streamline your accounting processes and benefit from submitting tax returns early by simplifying your bookkeeping, ensuring accurate tax submissions, and enjoying the peace of mind that comes with being ahead of the game.

Switching to Gorilla Accounting is easy. Contact us today via our website!