Having just filed your 2023/24 self assessment tax return (hopefully ahead of the filing deadline), you probably don’t want to think about your next tax return for a while. That’s perfectly understandable.
However, there are a few very good reasons to start looking at your 2024/25 tax return now, before the tax year ends on 5 April – and not just because it would allow you to file after 6 April and get it done and dusted nice and early.
Self assessment filing stats
- More than 11.5 million taxpayers filed their 2023/24 self assessment tax return before the 31 January 2025 deadline (source: HMRC).
- 732,498 filed their tax return on deadline day, with 31,442 filing in the final hour.
- Almost 70,000 people filed their 2023/24 tax return on 6 April 2024, the start of the new tax year and the first day it was possible to file.
- Almost 300,000 filed their tax return in the first week of the new tax year, almost 10 months before the online filing deadline.
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Why file your tax return early?
There’s a clear trend for people choosing to file their self assessment tax return early. You can in fact start work on filling in your next tax return before the end of the current tax year. Crucially, it can enable you to find out roughly how much tax you’ll owe, which might enable you to pay more into your pension, for example, rather than paying as much tax. Seek advice from an accountant on the most tax-efficient option for you.
Getting your self assessment tax return filed nice and early will also give you peace of mind from knowing it’s off your plate for another year. Then you avoid the stress of having to rush in January to file before the online-filing deadline. Who needs that? Rushing can also increase the likelihood that you’ll make mistakes, of course.
Earlier tax refunds
Knowing how much tax you owe also enables you to budget for your tax bill or speak to HMRC to find a solution if you’re going to struggle to pay. One such solution could be paying in instalments. Filing early can also help you to get a tax refund quicker. As soon as your tax return has been processed, HMRC will let you know if you’re due a refund and arrange for your overpayment to be paid back sooner.
Some people file early because they need proof of income, often if they need a mortgage or loan, or want to claim certain benefits. Knowing how much tax you owe can also enable you to judge how well your business is performing and plan for the future. If you’re employed, filing your self assessment tax return early might enable you to pay any additional tax you owe via PAYE, should you choose.
MTD for Income Tax
This year, many sole traders and landlords will have another good reason to file their tax return early, instead of leaving it until December or January. That’s because Making Tax Digital for Income Tax is being introduced from 6 April 2026 for sole traders and landlords with a gross annual trading/rental income of more than £50,000.
Once introduced, they’ll need to maintain digital financial records and use accounting software that can send digital income and expense summaries to HMRC every quarter. From 6 April 2027, sole traders and landlords with a gross trading/rental income of £30,000-£50,000 will need to do the same.
If sole traders or landlords need to start using accounting software or change to new accounting software so they can comply with MTD for Income Tax requirements, it’s best to do so as soon as possible, so that they’re ready. Getting their self assessment tax return filed as soon as possible will clear the decks to help enable them to do so.
Copyright 2025. Sponsored post by Mike Parkes of GoSimpleTax - tax return software that can help you manage your self assessment.