The early bird catches the refund

Jun 13, 2013

Croombs Chartered Accountants in Hampshire

We are now well into the new tax year, so whilst you may be looking to the challenges ahead, don’t forget about your tax return for last year.

There will be many of you that for various reasons have a tax refund due to you.  Perhaps your business profits have decreased or your tax code is incorrect and too much tax has been deducted.

If your business is a Sole Trader or a Partnership then your tax payments are usually calculated on the previous years profits.  If business profits decrease then you will be paying tax in advance on anticipated profits not actual profits (or losses!).  In addition you may have purchased some new equipment in the year or perhaps a new van which will decrease your taxable profits.  If this is the case then you need to get your accounts completed as soon as possible so that you can complete your tax return as you may be due a refund.

If you are an individual and have a number of different sources of income, it may be that your tax code is incorrect and too much tax has been deducted at source.  It would be wise to give it to your Accountant to check, so that if you have overpaid tax then you can submit your tax return promptly and get your money back as soon as possible.

Another group of people that could perhaps have overpaid tax is pensioners.  They may also have different sources of income or a number of different pensions which aren’t being taxed properly.

I would recommend that at the very least you complete your tax return as soon as you can so you can calculate how much tax is due, or possibly due back.  You don’t have to submit your tax return immediately, but at least the work will have been done and you won’t get a nasty surprise in January 2014 when you receive your tax bill. You may even get a pleasant surprise if you are due a refund!

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