Submit Tax Return Early !

The deadline for filing your Self Assessment tax return is 31 January each year.

Contrary to popular belief, you don’t need to wait until January to submit it. You can actually get ahead by filing as early as the end of the tax year. In 2023, over 77,500 taxpayers avoided the January rush by submitting their tax returns on 6 April.

Filing your tax return early provides several benefits beyond just compliance.

1. Minimize your risk of paying penalty fines

An estimated 1.1 million customers missed the 31 January 2024 deadline. HMRC sends reminders well in advance, but if you fail to submit your tax return on time, you'll receive a penalty notice detailing the penalty amount, the reason, and required actions.

Penalties for late tax returns include:

- A £100 fixed penalty, applicable even if there's no tax to pay or if the tax due is paid on time.
- Daily penalties of £10 per day, up to a maximum of £900 (after 3 months).
- 5% of the tax due or £300, whichever is greater (after 6 months).
- An additional 5% or £300 charge, whichever is greater (after 12 months).

If you believe you've been unfairly penalized or have a reasonable excuse for filing late, you can appeal the penalty. HMRC provides guidance on how to appeal online.

2. Receive your refund more swiftly

If you overpaid during the last year, HMRC will owe you a refund (also known as a tax rebate). At the end of the tax year, HMRC will send you a P800, detailing how to claim your refund. Processing this can take anywhere from five days to eight weeks, depending on various factors.

The time it takes for HMRC to process your tax return largely depends on their workload. January is their busiest month, so submitting your tax return early can help you avoid long waits and receive your refund faster.

3. Avoid the last-minute panic of submitting your tax return

Do you tend to put off your tax return until the last moment? You're not alone. January 31 is the busiest day for filing with HMRC.

For the 2022 to 2023 tax year, a record-breaking 11.5 million taxpayers completed their Self Assessment tax returns by the deadline. On January 31, 2024, 778,068 customers filed their returns, with:

- 61,549 (8%) filing between 4:00 pm and 4:59 pm (the peak hour).
- 32,958 (4%) filing between 11:00 pm and 11:59 pm.

Remember, you need to register in advance. Outside the January peak, this can take a couple of weeks, but if you wait until January, the wait could be much longer.

Getting your tax return done early not only avoids the January rush but also removes a major stressor from your holiday season, giving you a relaxing start to the New Year.

Save Time - Save Tax  - Keep it Simple