Top 10 Reasons to File You CIS Return Early in 2023

CIS Return

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Reasons to File You CIS Return Early

As a tax expert, I highly recommend filing your CIS return early to HMRC. Here are the top 10 reasons why it’s beneficial for contractors in the UK to file their CIS return early:


  1. Better cash flow: Filing early allows you to get your tax refund sooner, which helps you manage your cash flow more efficiently. You will be better off receiving your CIS refund early because of the soaring inflation rate which is more than 10% in 2023. In other words, the £1000 now will be worth £900 in a year’s time if the inflation rate is 10%.

  2. Avoid backlogs: By submitting your CIS return early, you can avoid the last-minute rush and potential delays in processing. Some of our clients had to wait longer than 3 months to get a refund in 2022. Therefore, we would recommend filing your tax return early to avoid any delay in receiving your refund.

  3. Avoid penalties: HMRC may charge penalties for late filings. Filing early gives you enough time to correct any errors before the deadline.

  4. More time to plan: Filing early gives you more time to plan and budget for your tax liabilities. Also once you get the cash you can invest them or make a better budget.

  5. Avoid stress: Filing your CIS return early can help reduce stress levels by avoiding the last-minute rush and deadline pressures.

  6. You can contact HMRC when they are less busy: Filing early allows you to contact HMRC when they are less busy, making it easier to get any queries resolved quickly.

  7. Enjoy your Christmas and New Year’s Eve without being worried about filing your tax returns: Filing early allows you to relax and enjoy your holiday season without having to worry about your tax returns.

  8. Better position to access mortgages and other loans: If you are self-employed you require minimum 2 year tax return information to get a mortgage. Filing your tax returns early can help you secure a better position to access mortgages and other loans as you have already provided your financial information to HMRC.

  9. You need time to provide further information if requested by HMRC: If HMRC requests further information about your tax return, filing early gives you enough time to gather and provide the required information.

  10. Save money on your tax return fee: Some tax professionals offer early bird discounts for those who file their tax returns early, allowing you to save money on your tax return fee.
 

In summary, filing your CIS return early can bring many benefits, such as better cash flow, avoiding backlogs and penalties, more time to plan, and reduced stress levels. You can also contact HMRC when they are less busy, enjoy your holiday season, and access mortgages and other loans more easily. Finally, filing early can help you provide further information if requested and even save money on your tax return fee.

benefits of filing tax return early
Income Tax

9 Benefits of Filing Tax Returns Early

This extensive article tries to emphasise the benefits of submitting your taxes early, including how it can save you money and prevent needless worry

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