What are the benefits of filing your tax return early. Why could this be one of the best financial decisions you make this year.
While the Self Assessment deadline for the 2024/25 tax year isn’t until 31 January 2026, early submission has real advantages.
Let’s break down ten practical reasons why filing your return sooner makes sense.
1. Remove the Stress Early
Ticking off your tax return brings instant relief.
You avoid the January rush and take a big task off your plate.
With one less deadline hanging over you, you’ll enjoy greater peace of mind.
Plus, it frees up time for more important things—like growing your business or enjoying your life.
2. Know What You Owe Sooner
Certainty Beats Guesswork
When you file early, you know how much tax you need to pay.
No more wondering or guessing.
You can plan your cash flow and budget for your January 2026 tax bill with confidence.
If needed, you can also set up a Time to Pay arrangement to spread the cost.
For more cash flow tips, see our Budgeting Advice.
3. Use PAYE to Spread the Cost
Save Interest and Time
If you owe £3,000 or less and are taxed via PAYE, you can spread the bill.
File your return by 30 December 2025, and HMRC will collect what you owe through your 2026/27 tax code.
This method acts like an interest-free instalment plan, easing the burden.
4. Get Tax Refunds Sooner
Don’t Let HMRC Hold Your Cash
Overpaid your tax in 2024/25? File now and get your refund quickly.
The sooner you submit, the sooner HMRC processes your repayment.
This can help boost your working capital and personal finances.
5. Adjust Your July Payment on Account
Stop Overpaying in July
Your second payment on account is due 31 July 2025.
By filing early, you know your actual liability and can reduce payments if needed.
You’ll avoid overpaying and keep more cash in your pocket.
6. Check if You’re Caught by MTD for ITSA
MTD Is Coming for Many in April 2026
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) starts in April 2026.
It affects sole traders and landlords earning £50,000 or more in 2024/25.
By filing your return early, you’ll know whether you’re affected.
This gives you extra time to prepare for the switch to digital tax reporting.
For more, read MTD for Landlords.
7. Tackle Transition Profits Smartly
Make the Most of Spreading or Bringing Forward Income
Self-employed with a non-standard year-end?
You might have transition profits from 2023/24 to spread over five years.
Once your 2024/25 return is filed, you can assess whether bringing some of those profits forward is better.
You may pay less tax by using unused allowances or lower rates this year.
8. Provide Proof of Income
Boost Mortgage or Loan Applications
Many lenders need proof of earnings before offering credit or a mortgage.
A filed tax return acts as official evidence of income.
Having it ready gives you the edge when applying for finance.
This helps freelancers, contractors, and sole traders show stability to lenders.
9. Support Your Future Tax Planning
Don’t Fly Blind
Early filing gives you clarity over your finances.
You can then review your tax affairs and spot planning opportunities.
It helps with decisions on savings, pensions, business structure, or profit extraction.
For tax planning help, visit I Hate Numbers Tax Planning.
10. Make Your Accountant’s Day
Avoid the January Scramble
Accountants get swamped near the 31 January deadline.
By sending your information early, you avoid the crush and win goodwill.
You’ll also have more time to ask questions and review the return properly.
It means better service and fewer errors.
Why Wait? Do It Now and Reap the Benefits
The tax return deadline may be far off, but the benefits of filing your tax return early are many and varied .
You gain control, reduce pressure, and may save money.
Use that head start to your advantage.
Whether you’re a business owner, landlord or freelancer, act now and future-you will thank you.
Let’s Wrap Up: Key Dates to Remember
6 April 2024 – Start of 2024/25 tax year
31 July 2025 – Payment on account due
30 December 2025 – Deadline to have underpayments coded via PAYE
31 January 2026 – Self Assessment filing deadline
Need Help With Your Tax Return?
At I Hate Numbers, we help you understand, plan and stay ahead of your tax.
If you’re unsure where to begin or want to maximise your tax efficiency, we’re here to support you.
Plan it, Do It & PROFIT