It can be a misconception that you have to wait until January to file your tax return.  A Self-Assessment tax return can be submitted from the day after the tax year ends (tax year 2023/24 ended 5 April 2024), and there are numerous benefits to submitting your tax return early.  
 

You’ll know what you owe 

Filing your tax return early doesn’t mean you have to pay your tax bill immediately. The balancing payment for 2023/24 is due 31 January 2025. This is regardless of when your tax return is submitted.  If you can’t pay your Self-Assessment tax on time, submitting your return early means you have more time to obtain assistance from HMRC and negotiate longer-term “time to pay” arrangements. 
 

Manage your cashflow 

Early submission gives you the chance to pay your tax bill in instalments. This could help you with cashflow throughout the year. Say for example, your 31 January 2025 payment is £6k. If you submit your tax return in August 2024, you can pay £1k each month until 31 January 2025. As long as the balance has been paid by 31 January 2025, there will be no late payment interest.  Whereas if you submit your tax return in January 2025, you will need to make a £6k payment before the end of that month. 
 

Find out sooner if you’re due a refund 

By submitting your return early, you can know sooner rather than later if you are due a refund from HMRC and thus receive it sooner. 
 

Reduce stress 

Avoiding the last-minute rush is a significant benefit of filing early. The closer you get to the deadline, the busier and more stressful the process can become. By submitting your return early, you can avoid the stress that comes with rushing to meet the deadline.
 

Proof of income 

Filing early means you can have proof of your income readily accessible. You may need this for a mortgage, remortgage, loan, and benefit claims.  
If you use a tax agent to file your tax return, early filing allows them to review your tax position and advise appropriately. Sound advice is based upon sound data; the sooner you can provide that data, the better!

If you have any questions or need help with this new process, please contact your usual Moore advisor.