New tax year. Reasons to get 2019-20 Tax Return done early

If you are due a refund, it will be processed more promptly.

The sooner a Tax Return is processed, the sooner you will know what tax to pay and when.

The date that a Tax Return is filed does not affect the date that the tax liability is due.

Due to lockdown, many people will be quieter or even not allowed to work.  HMRC have specifically state that discharging statutory duties is not regarded as work for the purpose of eligibility to the coronavirus job retention scheme grant.  

Typically, Tax Return compliance workloads start increasing as the filing deadline approaches.  Accordingly, January is the busiest time of year for accountants.  Response times and lead times will lengthen.  The accountant will be able to afford less individual attention around this time.

For the same reason HMRC will be busier; restricting another line of enquiry.

If 2019-20 income has reduced as a result of lockdown, a refund or reduced tax liability is more likely.

If 2020-21 income is likely to be lower as a result of lockdown, 2020-21 payments on account can be reduced.  This in turn increases the likelihood of a repayment.

The date that you file a Tax Return does not affect the time limit allowed for making an amendment.  For 2019-20, the amendment filing deadline is 31 January 2022.

There is no evidence to suggest that the date a Tax Return is filed has any bearing on the likelihood of an HMRC enquiry.

If providers of Tax Return information such as: employers, letting agents and suppliers are less busy, it is a good opportunity to request required documents from those sources.

Knock it on the head. Place yourself in the accountant’s favour.