Benefits of filing your Self Assessment tax return early
Filing your Self Assessment tax return might not be the first thing on your to-do list, but tackling it early can offer some advantages. By staying ahead of the deadline, you can save time, stress, and even potentially money.
Here, we’ll cover what a Self Assessment tax return is, when it’s needed, and the key benefits of filing it early.
What is a Self Assessment tax return?
A Self Assessment tax return is a system used by HMRC to collect Tax from individuals whose income isn’t taxed at source. This typically includes self-employed individuals, landlords, company directors, and those earning income from savings, investments, or overseas assets.
Unlike employees whose tax is automatically deducted through PAYE (Pay As You Earn), anyone who falls under the Self Assessment system, is responsible for reporting their income and expenses to HMRC and paying any tax due.
When do you need to do a tax return?
- Self-employed sole traders earning over £1,000 before any tax relief claimed
- A partner in a business partnership
- Those with a taxable income above £150,000
- Where Capital Gains Tax was paid on an asset sold or disposed of
- Those who had to pay the High Income Child Benefit Charge
- Individuals who received income from renting out a property, tips and/or commissions, savings, investments and dividends as well as any foreign income
The above is not exhaustive, there are other occasions where a Self Assessment is legally required. HMRC have a useful checker to help you understand if you are required to file a tax return: Check if you need to send a Self Assessment tax return - GOV.UK
The deadline for online submission of the tax return is 31 January following the end of the tax year (which runs from 6 April to 5 April). Filing late or not filing at all can result in penalties and interest charges, making it important to understand your legal obligation to submit on time.
When can I do my tax return?
Although the deadline for submission is 31 January, you don’t have to wait until then. HMRC opens the Self Assessment portal in April, immediately after the tax year ends. This means you can start gathering your information and submit your tax return from as early as 6 April.
By submitting early, you give yourself more time to prepare, reduce stress, and gain financial clarity well ahead of the deadline.
Key benefits of filing early
Here are the top reasons why filing your tax return early could be a smart move:
1. Avoid last-minute stress
Leaving your return until January often leads to a scramble to find documents and meet the deadline. Filing early gives you time to gather your records and avoid any surprises.
Leaving your return until January often leads to a scramble to find documents and meet the deadline. Filing early gives you time to gather your records and avoid any surprises.
2. Time to plan for your tax bill
Filing early doesn’t mean you have to pay early. You still have until 31 January to settle any tax due, but you’ll know exactly how much you owe months in advance - allowing you to budget or save accordingly.
Filing early doesn’t mean you have to pay early. You still have until 31 January to settle any tax due, but you’ll know exactly how much you owe months in advance - allowing you to budget or save accordingly.
3. Faster tax refunds
If you’re due a tax refund, filing early means you’ll receive it sooner. There’s no need to wait until January - HMRC usually processes refunds within a few weeks.
If you’re due a tax refund, filing early means you’ll receive it sooner. There’s no need to wait until January - HMRC usually processes refunds within a few weeks.
4. Better access to specialist support
Tax advisers are in high demand in the run-up to the deadline. By acting early, you’re more likely to get help when you need it.
Tax advisers are in high demand in the run-up to the deadline. By acting early, you’re more likely to get help when you need it.
5. Reduce risk of penalties
Missing the deadline by even a day can result in an automatic £100 fine, with further penalties if the return remains outstanding. Filing early ensures you stay compliant and avoid unnecessary charges.
Missing the deadline by even a day can result in an automatic £100 fine, with further penalties if the return remains outstanding. Filing early ensures you stay compliant and avoid unnecessary charges.
6. Peace of mind
Perhaps the biggest benefit of all is knowing it’s done.
Don’t wait for January to start thinking about your tax return. Get ahead, stay in control, and enjoy the peace of mind that comes from being prepared.
Perhaps the biggest benefit of all is knowing it’s done.
Don’t wait for January to start thinking about your tax return. Get ahead, stay in control, and enjoy the peace of mind that comes from being prepared.
We are here to help
If you have any questions about a Self Assessment tax return or need help filing, please get in touch with our specialist tax team via the form below.
