Why should you file your tax return early?

Why should you file your tax return early?

Filing your tax return is not a particularly enjoyable task, but it is important that you do so before the relevant deadlines.

Paper-based tax returns for 2023/2024 need to be filed by midnight on the 31st of October 2024. The deadline for online self-assessment tax returns is the 31st of January 2025. However, if you owe less than Ł3,000 and you wish to pay this via an adjustment to your PAYE code, you need to file your return online by the 30th of December 2024.

If you are self-employed, filing your tax return well in advance of the deadlines will give you time to make sure that you have the requisite resources available to pay your tax bill – or to arrange to pay it in instalments.

If you are employed but have other sources of income (such as investments or rental) then you might still need to file a tax return. If the amount you owe is Ł3,000 or less, you can choose to have this collected through your PAYE code.

Whether you are self-employed or employed, there are several advantages to filing your 2023/24 tax return early:

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  1. Prompt Repayments

    If you have paid too much tax for the period, then the earlier you file your tax return, the more quickly you can receive your repayment from HMRC.

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  1. Peace of Mind

    Filing your tax return in advance of the deadline will give you peace of mind and allow you to tick it off your to-do list.

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    If you are based in the South West, there are a number of accountants Bristol and the surrounding areas who can provide financial advice and services.

    3. Knowing what you owe or are owed

    The earlier you file your tax return, the sooner you will know how much tax you will have to pay and by when. You may need to make a payment on account. Doing everything early will mean that you know exactly how much tax you owe so you can sort out your finances as needed.

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