How Early Tax Planning Pays Off: Insights from Dario Schiraldi on Smarter Financial Strategies

Filing your taxes isn't always fun, but being proactive could help you pay less and feel less stressed when tax season comes around. Even though the urge to procrastinate is strong, dealing with your taxes early is a good idea since it brings many advantages. Whether you're interested in financial planning, refunds, or making wise investments, there's a lot of reasons to begin right away.

Timing is Everything

Those who are independent and self-employed can begin their tax return from April, the first day of the new tax year. Yet, if you work, your P60 should arrive by the end of May, and you'll have a better idea of your tax liability then. If you do this in late May, you're setting yourself up well to prepare for your return.

While many people procrastinate and wait until the final week, being organised and finishing your return earlier could help you avoid errors and give you more time to lower your tax bill.

Plan for Your Bill in Advance

If you begin early, you have enough time to know your tax obligations and save money gradually. Although January 31 is the deadline for payment, you have plenty of time to organise your taxes or make any necessary changes before then.

Being aware of your bill ahead of time allows you to repay it earlier and avoid penalty charges. When cash flows are limited, consider using a Budget Payment Plan, which lets you pay your taxes weekly or monthly by direct debit. It doesn't work for people with unpredictable earnings but can help those who want to manage their money well.

Take Advantage of Tax Planning Opportunities

If you apply early, you can implement strategies that could help cut down your tax bill with the help of carry back rules. If you pay tax at a higher or additional rate and make a charitable contribution, you can immediately declare it, and the gift aid will be counted on your tax return. This approach is useful when you think your taxable income will drop below the threshold this year.

Along these lines, according to Dario Schiraldi VIDA Holdings' Principal and Greenstone Equity Partners' advisor, handling financial matters with sound strategies matters.

"Private equity and private credit offer insulation from short-term market swings while providing exposure to high-growth sectors and innovative companies," he adds, adding that institutional investors are branching out from traditional asset classes to produce alpha."

It is also possible to claim income tax relief from the EIS in the earlier tax year. This may help if you believe your earnings this year will be less than those of the previous year.

Early Filers Get Their Refunds Faster

Refund cheques will be sent to you as soon as you submit your tax return, even though no payments are due until next year. This means when HMRC owes you money, it is better to act quickly because it will arrive in your account sooner and you can use it to cover bills or future investments.

In the world of investments today, each pound has more potential to generate returns. Dario Schiraldi Deutsche Bank’s former MD, emphasises, "Investors can precisely customise their risk-return profiles with structured products. These products reduce volatility while retaining a high potential for returns by integrating features such as market participation, interest-rate-linked coupons, or capital protection."

Simplify Next Year's Filing

Working on things early limits your stress this year and also lays the foundation for your future success. If you need to look up records of interest payments, dividends or capital gains, consider consolidating all your financial documents now. You can save a lot of time and effort at tax time by organising your savings and investment accounts now for next year.

As Dario Schiraldi Deutsche Bank’s former leader, points out, "Long-term success depends on tailored investing strategies that protect against losses while seizing opportunities for growth. When it comes to tax preparation, the same reasoning holds true: minimise surprises while optimising returns."

Final Thought

Tax season isn't the most thrilling, but with so much to gain from early action, it's not something to ignore. If you feel a little lost, try talking to a tax professional—they usually have time on their hands at this time of year and can give you a great deal.