Thinking there is still plenty of time to prepare and file your tax return? As an accountant, I see business owners stressed when the tax season approaches.
As an accountant, I see business owners stressed when the tax season approaches. Do not underestimate the time it takes to get all the paperwork sorted. Make sure you have your UTR number, NINO or even can access to your HMRC portal. Not having this information can delay your tax return filing.
That’s why it’s crucial to get your tax return filed early, to overcome any unexpected circumstances with ease.
The deadline for filing your Self Assessment tax return is 31 January 2026 (for the 2024/25 tax year). But did you know you can file as early as 6 April 2025?
So, let’s get into the reasons why filing early is a smart move:
1- Avoiding penalties. It is a deadline, not a target!
HM Revenue and Customs (HMRC) imposes penalties if you file your tax return late of pay your taxes after the deadline. They will send a penalty notice detailing the amount you owe, the reason for the charge and any further actions required from you.
Penalties for filing a tax return late are as follows:
| Date Return is Filed | Penalty Imposed |
|---|---|
| After due date – up to 3 months late | Fixed penalty of £100 – even if there’s no tax to pay, or if the tax due is paid on time |
| 3 months to 6 months late | Penalty of £10 per day (up to 90 days) in addition to £100 |
| 6 months to 12 months late | Higher of: |
| 5% of tax due or £300 (In addition to above penalties) | |
| More than 12 months late | Higher of: |
| 5% of tax due or £300 (In addition to above penalties) |
2- Avoiding last minute panic
Filing your tax return early helps you avoid the inevitable stress that comes with waiting until the last minute. Remember that you’ll need to gather all the essential paperwork, such as P45s, P60s, bank statements or any other expenses or income you might incurred during the year. So, ensure you give yourself plenty of time to do so.
For sole traders and landlords, early filing is especially helpful. You may be required to make Payments on Account for the next tax year (2025/26), which are due in two instalments:
- 31 January 2026 (50% of your current year’s tax)
- 31 July 2026 (remaining 50%)
If you file before 31 July 2025 and have overpaid tax, you could receive a refund much sooner.
3- Knowing your tax liability in advance. Plan your cash flow with confidence
One of the major benefits of filing early is that it gives you clarity on your tax liability well before the deadline and helps you plan your cashflow with ease. If you owe tax, you’ll have more time to arrange payment without the pressure of a looming deadline. And if you are due a refund, filing early ensures you receive it sooner rather than later.
We use cloud accounting software (Xero and FreeAgent) that provides our clients with forecasted tax liability so they can plan.
4- Peace of mind
It is never too early to get on top of your finances. At MSG Accountancy we engage with clients early on after year end, so the tax return is drafter early in advance avoiding last minute stress and bringing you with the peace of mind to focus on the right things.
Need Help Filing Early?
Outsourcing your accounting is a smart move that any consultancy business owner can make, so you don’t have to worry about the dreading tax deadlines anymore. Outsourcing your accounting needs can not only save you time and energy, but it can also help you stay organised and ensure your tax filings are completed accurately and on time.
I would love to chat with you about how I can help you with yours. Get in touch with MSG Accountancy today to get started. Let’s get your tax return sorted now so you can move on to more exciting things.
