Avoid Last-Minute Tax Stress: 10 Early Filing Benefits for 2024–25

Millions of people every year have to complete a

personal tax return, and that could be because

they're self-employed.

They've got income that hasn't been

taxed to source like savings interest.

They could have properties they're

renting out.

They could be high net worth individuals.

They could be people who are receiving child

benefit or are classified in that bracket as well.

A number of reasons why that could be going on.

Now, my view is that where you can.

File your tax return as early as possible.

We've already filed thousands of tax returns

over the years and in this year that we're

looking at, we've already submitted tax returns

even before the season gets fully underway.

And in this week's podcast, I'm gonna

outline 10 benefits of filing your

tax return early.

Now in no particular order, number

one, removing the stress early.

Now, let's be honest, tax season can be, if not

managed correctly, a very stressful process, not

just for the accountants doing the returns, but

for the individuals who have to get all the

information together, put things, assemble them,

either do it themselves or give it to their

accountant to actually file it on their behalf.

That timeline can creep up on you, and before

you know it, you're in the period of Christmas.

You've still got time to go, but who really

wants to be doing tax returns over the

Christmas period?

Now, if you did your tax return early, then you

can remove that looming deadline from your life

and it's one thing ticks off your to-do list,

and instantly you'll feel a bit of a weight

off your shoulders instead of waiting for.

January 26th to come around the corner.

You completed the tax return by say, December

25, and we're talking about 24 25 returns here.

No last minute rush, no late night calculations.

You can move forward with confidence knowing that

this task is out the way.

And the best part with this out of the way

off your shoulders, you can focus on

more important things growing your business

or just enjoy your life.

Reason number two sounds like a bit of

a song, doesn't it?

You can know what you owe HMRC sooner

rather than later.

Having that nasty tax surprise creep up on

you can be a bit of a shock to the system when

you know what you owe.

That brings a degree of clarity and

calm certainty, and something that beats the

guessing game any day.

You won't be left wondering how much tax

you owe 'cause you'll know that figure and

you don't have to pay it straight away.

Remember, under normal circumstances for

a 24 25 tax return, the tax doesn't have

31st of January, 26 is the line in the sand, the

deadline where everything has to be sorted.

You're able to cash flow to budget.

My two favorite terms, and if you find you

haven't got the funds to put aside, you get

time to figure out a repayment plan with HMRC.

And get time to get that money together.

Reason number three, there's the option.

If you don't have the funds that you can pay

via PAYE, PAYE can spread that cost burden for you.

pounds worth of tax, I. And you are on PAYE,

so it's not unusual.

You could have a part-time job or

full-time job.

Your business could be a side hustle, for example.

Or you could be in employment.

You've got some property income for which

you owe some money.

Well, you can spread your tax bill in your 26 27

code as long as you file your tax return by the

HMRC will collect what you owe.

Through your PAYE deductions, treat it like

an interest free loan.

Your monthly salary in terms of take home

pay will be slightly less, but that tax

bill could be spread by having it collected

months later, and it's all interest free.

It's a simple way to manage your tax payments

without the stress of finding a lump sum

of money, which you might wanna put some

on side for a holiday or a house on purchase.

Reason number four, it may be, and it happens.

We've seen it quite often.

That you may be owed money back for

yourself a tax refund.

The sooner you file, the sooner

you get that money.

If you have ended up overpaying your tax

in 24 25, whether your payments are account

are too high, you've got business losses

that you can claim.

You've overestimated your income.

And the reality is when you put the records

together, it's much less if your income

is dropped compared to where you thought it was.

Any of those reasons.

Our finding early means you get your

refund sooner.

Now, this can be a great boost to your

household budget.

Your business working capital is your finances,

and the sooner HMRC process, the claim and

the return, you'll know exactly what's owe.

And you should be able to figure out

whether there's a repayment due or not.

Now, when we process this for clients, we

get a pretty good idea within a week or two

of filing it when that money's gonna come into

our client account.

We normally know at the time of doing

the return whether money is owed back to

the client as well.

That's a nice little brucey bonus.

Reason number five, the wonderful

payment on account.

Now, for those people who are already in

the tax return system, if you've owed more

than a thousand pounds from your last year.

You're gonna have payments on account to

make, you've got a second one coming up in July.

If by the time you listen to the broadcast coming

back, it's gone past July, you can still do

your tax return, get that in early, and it

can recalculate what you've paid already.

But if you're in that situation, your

cash flow is tight.

You know, circumstances have changed.

Getting the return done before July

is an ideal moment.

No more overpaying, filing early, more

money in your pocket.

Recent number six, and I said there are 10

here, so we've got some juicy ones to come.

You can check if you're actually caught by MTD

making tax digital.

Check out the show notes.

Check out.

Previous podcast.

By the way, we've talked about this very subject.

Now, if you are self-employed or a

landlord making tax store could have your name.

Marked now starting on April 26th, making

taxes to all affect sole traders and

landlords with income in excess of 50 grand.

That's not profits, that's income.

So if you file early, you'll know

if that change is gonna impact on you.

You'll have time to get ready for the switch of

digital tax reporting.

What's not to love about that?

Reason number seven, transition.

Mark the first year where the basis period for

self-employed individuals was set to a fiscal

year, 5th of April basis.

So if you are self-employed on a

non-standard year end, this could

be up your street.

you could spread them over five years.

Once you're 24, 25 return, it's filed,

you'll know you're bringing some of those

profits forward, could help you pay less tax.

It's about maximizing those allowances

and the lower rates.

Reason number eight, that proof of income.

Now for many individuals who've got tax returns,

that's gonna be a basis of proving income.

If you wanna borrow money, get a mortgage,

filing early is the way to go.

'cause the lender will want that

documented proof of what your income is.

The most recent ones they like to go for, and

many lenders, including those mortgages or loans.

Require a final tax return as official

evidence of your income.

I'm just gonna drop in that essay 3 0 2.

It's a popular term that wrote about,

so by finding early, you'll have that

proof ready and give yourself the edge when

you apply for finance.

Now this can be really helpful if you are a

freelancer, a contractor, a sole trader, who

needs to show that confirmation of income.

Reason number nine, it helps in your

future tax planning.

It gives you that clearer picture of your

finances, the areas that you can try to

mitigate, and it really feeds into the process.

When we do tax advice and planning for clients

here, we like to help understand what the

numbers are saying so we can give appropriate

advice accordingly.

If you review your return early, you can

spot opportunities.

To approve your tax efficiency.

Maybe it's a decision about how your money is

saved, pensions, business structure, how you take

money from your business, whatever that is, early

filing helps provide that information for a more

tax efficient future.

The reason number 10, and again, I'm not giving any

weightings or priority to these benefits, but

reason number 10 is your accountant will

definitely appreciate that finding early means.

They avoid the January scramble.

Many accountants, taxpayers file quite

late up to the 31st of January deadline.

Send the information early.

You avoid the last minute rush, win their goodwill.

And in our practice, we say clients upfront

that if you give your information in

after a certain time, typically around about

the end of November.

We'll do it our level best to get

'em filed on time.

We've never missed a deadline yet, but there's

gonna be a premium 'cause of staff overtime

and staff working also gives you time

to react, provide that information, and it's

a stress-free situation all round, so why wait?

Do it now and reap those benefits now.

The tax return deadline fills a long way off

clocks go quickly.

And the benefits of finding early

are here right now.

Control over your finances, reduce

pressure, and you might even save

money in the process.

Now I'm just gonna leave you some key dates to

remember the tax year.

24 25 started officially on the 6th of April 24.

The 31st of July 25 is when your first

payment on account is due from the previous

year, December 25.

30th is the deadline to have any underpayments

coded by I-P-A-Y-E and the 31st of January

26th is the timeline for the self-assessment,

finding deadline, and paying any taxes due

and your first payment on account as well.

Now if you need help with your tax return,

check out our website, YouTube channel podcast

for information that we publish that's

free of Charles.

Free to access, join our mailing list so we

can keep informed of what's going on and,

you know, contact us.

If you wanna have a chat about your tax

return, then we'd be happy to speak to you.

And I hope some of these benefits with

finding your tax return early have resonated.

If you feel this has been a benefit, we'd

love it if you could share the episode.

Until next time, folks, happy tax returning.