File your tax return ahead of the Self-assessment deadline

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.

This year, 298,905 people filed their 2025/2026 Self Assessment tax return in the first week of the new tax year, with a record 737,891 filing in April 2026.

More than 12 million are expected to submit their tax returns and pay their tax bill before the deadline on 31 January 2027, and filing early comes with many benefits.

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.

More than 1.1 million people missed the 31 January self-assessment tax return filing deadline for 2024/2025, 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

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.

If you have overpaid tax and are owed a refund, filing your tax return sooner will mean you will receive your refund sooner too.

By taking the 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.

Introduction of Making Tax Digital

This year, those earning more than £50,000 through self-employment or property income (assessed on 2024/2025 tax returns), are now required to comply with Making Tax Digital (MTD) for Income Tax. If you are mandated to use MTD, this means for the 2026/2027 tax year, you will submit quarterly updates using compatible software.

You will also need to continue as normal and submit a 2025/2026 self-assessment tax return before the deadline on 31 January 2027.

Under MTD framework, you will then submit an annual tax return for 2026/2027 before 31 January 2028, which finalises the MTD reportable income for the tax year and includes income from all other sources.

Starting early to avoid stress later on

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.