The benefits of filing your tax return early go well beyond simply getting an unpleasant job out of the way.

You can reduce deadline stress, receive a tax refund sooner if one is due, give yourself more time to check the numbers and understand what you owe before the payment deadline arrives.

In this episode, we look at seven practical reasons why getting your Self Assessment return done earlier can save you time, improve your financial planning and make the whole process easier to manage.

About this episode

Tax returns have a deadline, but the deadline does not have to become your personal target date.

Waiting until the final weeks can create pressure that simply does not need to be there.

Once the tax year has ended and you have the information you need, starting earlier gives you more time to gather records, understand the calculation and deal with anything unexpected.

There are seven benefits in particular that make early filing worth considering.

7 benefits of filing your tax return early

1. Reduce last-minute stress

Self Assessment can be stressful enough without adding a deadline scramble.

Leaving the return until January means the tax return competes with everything else happening in your business and personal life.

Starting earlier removes much of that pressure.

You can work through the return properly, deal with questions as they arise and then move your attention back to the other things that matter.

2. Receive a tax refund sooner

Not every Self Assessment return ends with tax to pay.

You may have paid too much tax and be entitled to a refund.

If that happens, submitting the return earlier means HMRC can start processing the repayment sooner.

That money may be useful for your personal finances, business cash flow or another financial goal.

3. Give yourself time to gather the right information

Rushing creates problems because tax returns depend on information.

You may need invoices, bookkeeping records, employment information, property figures, bank information or details of other income.

When you start early, a missing document is something to find.

When you start days before the deadline, the same missing document becomes a crisis.

The extra time also allows you to double-check figures and resolve gaps before submitting the return.

4. Reduce the risk of late-filing penalties

A tax return submitted comfortably before the deadline cannot become late because you forgot about it, became busy or life got in the way at the last moment.

HMRC charges penalties when Self Assessment returns are filed late.

Those penalties can increase the longer the return remains outstanding.

Getting the job done earlier removes an unnecessary financial risk.

5. Improve your financial planning

One of the most useful benefits of early filing is knowing the tax number.

Once your return is prepared, you have a much clearer idea of what you owe.

That means you can compare the liability with the money you have already saved and make a plan for any difference.

Importantly, filing the return early does not normally mean paying the tax early. You still keep the normal payment deadline.

So you gain the information without losing the time available to organise the cash.

If you need a more detailed approach to putting the money aside, see our guide to budgeting for your tax bill.

6. Free up your time and headspace

An unfinished tax return takes up more than physical time.

It can sit in the back of your mind as something you know still needs doing.

Completing it earlier removes that distraction.

You can then put your attention back into your business, work and personal life rather than carrying the return around mentally until January.

7. Give yourself more time to check accuracy

Accuracy matters with Self Assessment.

When you are rushing, it becomes easier to miss information, enter the wrong figure or overlook something that needs checking.

Preparing the return earlier gives you room to review the numbers properly.

If you prepare it yourself, you can step away and look again before submitting.

If an accountant prepares it for you, they have more time to ask questions and resolve anything that does not look right.

Early filing can also help with payments on account

Payments on account are advance payments towards your next Self Assessment bill.

Where they apply, HMRC normally asks for two instalments during the year.

Completing your return earlier can help you see how those payments affect your overall tax position.

If you reasonably expect the following year's liability to be lower, you may be able to ask HMRC to reduce your payments on account.

However, be careful. If you reduce them too far and the eventual tax bill is higher, HMRC can charge interest on the difference.

For more detail, see Payments on Account Explained.

Filing early does not mean paying early

This distinction is worth repeating.

You can submit your Self Assessment return early and still pay by the normal payment deadline.

That gives you the best of both worlds.

You know what you owe, but you also retain the time available to budget and prepare for the payment.

If your main concern is how to use that extra time once you know the bill, our practical early-filing planning guide goes into that side in more detail.

FAQs

What are the main benefits of filing your tax return early?

The main benefits include reducing stress, receiving refunds sooner, avoiding the last-minute rush, lowering the risk of penalties, improving financial planning, freeing up time and giving yourself more opportunity to check the return for errors.

Do I have to pay my tax as soon as I file the return?

No. Filing early does not normally move the Self Assessment payment deadline forward. You can submit the return, find out what you owe and then prepare for the normal payment date.

Will filing early get my tax refund sooner?

Potentially, yes. If you are due a refund, submitting your return earlier allows HMRC to begin processing that repayment sooner.

Does early filing reduce mistakes?

Filing early does not automatically make a return correct, but it gives you more time to check figures, gather missing information and correct problems without deadline pressure.

Can I reduce my payments on account after completing my return?

If you expect the relevant tax liability for the following year to be lower, you may be able to ask HMRC to reduce your payments on account. Do not reduce them without a reasonable basis because interest can apply if the eventual liability is higher.

What happens if I file my Self Assessment return late?

HMRC can charge a late-filing penalty, with additional penalties applying if the return remains outstanding for longer periods.

Episode Timecodes

• 00:00 - Seven reasons to file your tax return early
• 01:17 - Why waiting for the deadline creates problems
• 01:39 - Benefit 1: reducing stress
• 02:08 - Benefit 2: receiving refunds sooner
• 02:52 - Benefit 3: avoiding the last-minute rush
• 03:21 - Benefit 4: avoiding late-filing penalties
• 04:03 - Benefit 5: stronger financial planning
• 04:40 - Payments on account
• 05:02 - Benefit 6: freeing up time and resources
• 05:23 - Benefit 7: improving accuracy
• 05:43 - Seven benefits summarised

Related episodes and guides

• File Your Tax Return Early: Know Your Bill and Plan Ahead
• How to Budget for Your Tax Bill When You're Self-Employed
• Payments on Account Explained: What They Are, When to Pay and How to Reduce Them
• Self Assessment Tax Returns

Key takeaway

The deadline is the latest date for dealing with your tax return. It does not have to be the date you aim for.

Filing earlier can reduce stress, give you more time to check the numbers, help you understand what you owe and allow any refund to be processed sooner.

You also remove the risk of leaving an important job until something unexpected gets in the way.

Do the return earlier, know where you stand and use the extra time to plan properly.

Plan it, Do it, Profit.

Further Support

If you want help understanding your tax bill or wider business numbers, use our free online business calculators.

If you need help preparing your Self Assessment, reviewing your tax position or planning ahead, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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Filing your UK tax return early for 2022/23 has immense benefits. You may wonder, why should I file early? Well, besides earning some serious bragging rights, there are many treats for early filers. In this week's I Hate Numbers Podcast, I'm going to highlight why you should file early. I'm actually going to give you seven reasons for filing early, including reduction in your stress levels, tax refunds, avoiding penalties and fines, and efficient financial planning.

Bit of a spoiler alert, carry on listening to the podcast and I'll expand on those themes. As with all these things, contact I Hate Numbers for any help that you need with your tax, accounts, managing your business finances, or just a virtual cup of coffee. Let's crack on with the podcast.

You are listening to the I Hate Numbers Podcast with Mahmood Reza. The I Hate Numbers podcast mission is to help your business survive and thrive by you better understanding and connecting with your numbers. Number love and care is what it's about. Tune in every. Now, here's your host, Mahmood Reza.

Now, filing taxes in the UK is a mandatory legal requirement for many individuals, businesses, or organisations that meet certain criteria. This podcast is not focusing on what those criteria are. Watch out for another podcast on that. But, while you may be tempted to put it off until the deadline, and for 22/23, by the way, the deadline is 31st of January

2024. There are numerous benefits to filing your tax return early for the 2022/23 financial year. Here's number one of seven: stress levels. That's not having them, but reducing them. It's no secret that filing taxes can be a very stressful experience. Waiting until the last moment increases your stress levels and can lead to mistakes, inaccuracies, and errors.

Filing your tax return early, you get to avoid that stressful scramble to meet the deadline. Instead, you get a chance to relax and focus on other important aspects of your personal or business life. Who doesn't want that? Reason number two of seven: tax refunds. Now, filling your tax return early means that you'll receive your tax refund, if you get one, much earlier.

You'll get to enjoy the benefits of the refund much earlier than people who have to wait until the last minute to file their returns. Now, this cash bonus, this cash infusion, can be crucial and a welcome bonus for your personal or business finances, and help you achieve those financial goals. Number three:

avoid the last-minute rush. Now, filing your tax return early, and remember, the latest absolute deadline for 22/23 is midnight, 31st of January, 2024. Now, filling your tax return early means you won't have to rush to meet the deadline. You'll have plenty of time to gather all those necessary documents, double-check your figures, and make any corrections you need to before submitting your tax return.

That's three good reasons we've got so far. Let's come on to reason number four: penalties and fines, more so avoiding them. One of the primary benefits of filing your UK tax return early is that you get to avoid penalties and fines, that that money that goes into HMRCs coffers, and that comes with the territory of late filing.

If you file your tax return past a deadline, you will be subject to late filing penalties, and they can accumulate quite rapidly, especially if life intervenes and you are distracted from doing that necessary task. Filing your tax returns early, you get to avoid such penalties, and you avoid putting money unnecessarily into the coffers of HMRC.

Let's come on to reason number five, and it's all about financial planning, more so efficient financial planning. Another benefit of filing your tax return early is that it allows you to plan efficiently when it comes to your business and personal finances. Filing early means that you know exactly how much you owe, if anything,

and you could budget accordingly. This allows you to plan for the upcoming financial year in much stronger terms, both in terms of tax, and overall finances for your personal or business life. Ideally, by the way, folks, you should be putting money aside as you are earning it as you're invoicing clients,

but if not, then at least you know well before the deadline how much you owe. And also, by the way, folks, it helps on reducing any payments on account that you may have already in the pipeline. We're now coming into the final straight, and here's reason number six. It's about time and resources, more so freeing up your time, and freeing up your resources.

Filing your tax return early frees up your time, frees up those resources necessary, and allows you to focus on other aspects of your business, work, and/or your personal life. You don't have to worry about the stress, and who wants that, and the hassle that comes with trying to meet the deadline, which means you have more time to dedicate to those other important matters in your life.

A final point, number seven is about accuracy. Now, if you are a DIY filer, filing your tax return early, you increase your accuracy levels much more. It gives you enough time to go through everything you need to, check what's correct, check what's appropriate, and make sure all the information you provide is correct.

This means you're less likely to make any errors or omissions that could get you into trouble with HMRC, and trouble in HMRC means unnecessary time being spent as well as the impact on your bank account. Now, folks, we've got seven good reasons for filing your tax return early. Filing your tax return early for 22/23 will save you time, money, and stress, which is a big factor in our lives.

At I Hate Numbers. I understand that the process of finding can be overwhelming and stressful, and that's why we offer our professional tax and accounting services to individuals and businesses alike, whether you are a freelancer, sole trader, a limited company, contact us today for help and support on your tax, accounts, and managing your business finances.

Until next week folks, I'll see you on the other side. We hope you enjoyed this episode and appreciate you taking the time to listen to the show. We hope you got some value. If you did, then we'd love it if you shared the episode. We look forward to you joining us next week for another I Hate Numbers episode.