Getting your tax return for 2019/20 submitted may not seem like a priority right now but many people will be due a refund so getting your tax return submitted quickly will mean you get your money sooner. There are other reasons why it will make sense to get things moving.
It’s 9:00 am on 6 April, the first day of the new tax year, and we have already submitted tax returns for 2019/20. These were returns where we know a tax refund is due. HMRC is stretched so we expect that refunds will be slower than usual.
If you are a CIS (Construction Industry Scheme) subcontractor, you may be due a refund. Get the final month’s information, or an annual summary, from your contractor(s) and get your tax return prepared and sent to HMRC.
If you changed from being employed to self-employed during the year (or vice versa) you could be due a refund. Get your tax return sent in as quickly as possible.
There are other reasons why you might be due a tax refund.
Even if you are not due a refund, getting moving on preparing your tax return and accounts will make sense. Anyone applying for a loan is likely to be asked by the lender for up-to-date accounts. They are also likely to want confirmation that a tax return, including the accounting information, has been submitted.
Don’t expect any accountant/bookkeeper to be able to turn this around super fast. Delaying getting your information to us, or your accountant, could mean a delay in getting that important bank loan. Don’t risk it.
These are not normal times. Quite correctly, HMRC is concentrating on dealing with grant claims and are short of staff in any case. Most accountants and bookkeepers are similarly concentrating on extracting grants from HMRC and helping businesses with loan applications. Some accountants have virtually closed already and not all will survive. This means that when the crisis is over (hopefully soon) there will be a backlog in the system, resulting in delays.
The sooner your tax information is available to accountants to produce your tax return, the quicker it will be done. If you are spending time at home, spend some of it putting together the information needed. If in doubt about what is needed, speak to your accountant.
Read our other posts about the Coronavirus issues faced by businesses everywhere:
As always, we will try to help anyone with a problem, perhaps because they don’t have an accountant/bookkeeper or are having difficulty in contacting theirs. Existing clients of Central Business Services will be prioritised.