File your tax return ahead of the self-assessment deadline

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It is never too early to complete your self-assessment tax return. In fact, as soon as the tax year ends, you can submit your tax return. One thing you should avoid is leaving it to the last minute.

Risk of late tax returns

Leaving your tax return until the eleventh hour can lead to increased stress and anxiety, errors and omissions, not to mention potential delays and penalties.

This year, more than 1.1 million people missed the 31^st January self-assessment tax return filing deadline, facing a fixed penalty of £100 even if they had no tax to pay or paid the tax they owed on time.

For those who miss the deadline, financial penalties can swiftly add up. From the initial £100 fixed penalty, followed by daily penalties of £10 per day issued after 3 months (up to £900), and after 6 months additional penalties of 5% of the tax unpaid or £300 (whichever is greater), followed by another 5% or £300 charge (whichever is greater) after 12 months following the submission deadline.

Benefits of early tax return filing

This year, nearly 300,000 people completed their 2024/2025 tax return in the first week of the new tax year.

While it can seem a daunting task, by starting earlier, your approach will be more organised and you will therefore reduce the risk of mistakes and have greater peace of mind. Most importantly, you will benefit from having more time to pay the tax you owe and can choose a payment option that works for you.

By taking to following practical steps, you can transform a potentially stressful task into a manageable experience:

• Gather your records, including receipts, bank statements and P60 forms
• Familiarise yourself with the tax bands, deductions and reliefs applicable to you
• Break down the process into manageable tasks and set achievable deadlines for each stage
• Regularly review your progress and make necessary adjustments as your circumstances change
• Once you've completed your return, submit it well ahead of the deadline to avoid any last-minute hurdles

Remember, self-assessments are an essential part of fulfilling your tax obligations, so embrace the process and start early. If your tax affairs are complex, you may wish to consider assistance from an accountant or tax adviser.

Whether you complete your own tax return or use an accountant, please get your records organised as soon as possible to file your tax return in good time. Apart from avoiding unnecessary penalties, it will be much less stressful and allow time to budget for your tax liabilities, particularly if there are surprise tax liabilities that arise.