Sponsored feature: 22/23 Tax return – don’t leave it to the wire

During the pandemic years, HMRC granted taxpayers a slight reprieve in that the submission date was effectively extended to February (albeit any tax was still payable by the usual 31 January deadline).

However, for 22/23 we are back to business as usual (as we were for 21/22) and the spectre of 31 January again looms large in the calendars of tax advisors and accountants across the country.

The benefits of getting your tax return completed sooner extend not just to accountants though – taxpayers themselves stand to gain a great deal from completing their returns as soon as practically possible.

♦ Cash Flow

The payments on account for 22/23 are based on the figures on the 21/22 tax return. If you are liable to make payments on account for 22/23, getting your 22/23 completed before 31 July 2023 (the due date for the second 22/23 payment on account) could result in a cash flow benefit if your 22/23 income is lower than that for 21/22.

♦ Enquiry Window

Under usual circumstances, HMRC have one year from the date of submission of your 22/23 Tax Return to open an enquiry into entries on the Return. It therefore goes without saying that the sooner the Tax Return is submitted to HMRC, the sooner the enquiry window closes.

If your 22/23 Tax Return includes a transaction that potentially could be scrutinised in further detail by HMRC (for example, a complex capital gains calculation), getting your Tax Return submitted promptly means you will have certainty over your final tax position sooner.

♦ Tax Planning

Even though we are now past 5th April 2023, there is scope to put in place post year-end planning that could reduce your 22/23 tax liability.

For example, once your 22/23 Tax Return has been prepared, charitable donations could be made now and relief carried back to the 22/23 tax year. Similarly, carry-back relief is available for certain venture capital investments, like EIS qualifying shares.

♦ Budgeting

Clearly, knowing our final 22/23 tax liability as soon as possible is beneficial from a budgeting perspective. Completing your Tax Return as soon after 5th April affords you maximum time to ‘ring fence’ funds over the coming months to settle any tax liability due.

♦ Mortgages and Loans

Mortgage companies often ask for taxpayers’ ‘SA302’ (the tax computation from your Tax Return) as proof of income to meet affordability checks. Having the latest SA302 available minimises any delay in approving your finance application.

For more information from Churchgates on tax returns, email info@churchgates.co.uk, visit the Bury St Edmunds office at 18 Langton Place (IP33 1NE), call 01284 701271 or go to the website – www.churchgates.co.uk

Churchgates are a multi-disciplinary practice and can help you with the management of most aspects of your finances and wealth. However, we have a dedicated qualified tax team who would be pleased to assist you with the preparation of your annual Tax Return in isolation, with a view to building on that service with tax and general wealth planning advice to the extent required.