Why Filing Your 2024/25 Tax Return Early Is a Smart Move

As the 2024/25 tax year has officially ended, now is the perfect time for individuals who are required to complete a Self-Assessment tax return to take action. While the final deadline for online submission is 31 January 2026, many compelling reasons exist to file well before then. Here’s a closer look at the key benefits of getting ahead with your tax return.

1. Enjoy Peace of Mind

Filing your tax return early can provide a great sense of relief. It’s one less thing on your to-do list and frees up mental space, knowing you’re ahead of schedule.

2. Know Your Tax Bill Early

Once you submit your return, you’ll know exactly how much tax you owe. This gives you ample time to save for your January 2026 payment, or to arrange a Time to Pay agreement if you prefer to pay in instalments.

3. Spread the Cost via Your Tax Code

If you’re a PAYE employee and owe £3,000 or less, filing by 30 December 2025 allows you to have the amount collected through your 2026/27 tax code. This spreads the cost over the tax year without interest charges.

4. Get Any Tax Refunds Sooner

If you’ve overpaid tax in 2024/25, filing early means you can receive your repayment much quicker, rather than waiting until closer to the deadline.

5. Reassess Payments on Account

The second payment on account for the 2024/25 year is due by 31 July 2025. Filing early lets you confirm your actual liability and potentially reduce the amount due, avoiding unnecessary overpayments.

6. Prepare for Making Tax Digital (MTD)

MTD for Income Tax Self Assessment starts from April 2026 for individuals with trading or property income of £50,000 or more. That threshold is based on 2024/25 income, so filing early will confirm if you fall within the scope of MTD and give you more time to get ready.

7. Make Smart Decisions on Transitional Profits

If you’re self-employed and had transitional profits in 2023/24, you can choose to bring forward some of those profits to 2024/25. Filing early allows you to assess your total income and determine whether it’s beneficial to be taxed on it sooner, for example, if your 2024/25 tax rate is lower or you haven’t fully used your allowance.

8. Provide Proof of Income

Whether you’re applying for a mortgage, loan, or other financial support, your tax return offers official proof of income that lenders often require.

9. Strengthen Your Tax Planning

Early filing provides clarity around your income and tax position. This information is essential if you want to explore tax-saving opportunities or adjust your strategy for the year ahead.

10. Be Your Tax Adviser’s Favourite Client

January is always a hectic time for accountants and advisers. Submitting your information early helps them manage their workload and ensures your return is filed with care. They’ll no doubt appreciate your promptness!

In Summary
Filing your tax return early is more than just a task to tick off—it’s a proactive step that offers financial clarity, planning opportunities, and peace of mind. If you’re able, take advantage of the quiet months and get ahead of the game.

Partner Note: TMA 1970, s. 8

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