TaxCalc Blog

1. Avoiding last-minute stress

One of the most obvious benefits of submitting your tax return early is the reduction of stress. As the January 31st deadline approaches, many taxpayers find themselves scrambling to gather information, resolve issues, and complete their returns under pressure. This last-minute rush can lead to mistakes, overlooked details, and unnecessary anxiety.

Benefit:

Filing early allows you to avoid the panic and stress associated with the deadline. You’ll have more time to carefully review your return, ensuring everything is accurate and complete.

2. More time to pay your tax bill

When you submit your self-assessment tax return early, you’ll receive your tax calculation well before the payment deadline. This gives you more time to plan and budget for any tax liabilities, rather than scrambling to find the funds at the last minute.

Benefit:

You have more time to save or arrange finances to cover your tax bill, reducing the risk of late payment penalties or the need for emergency borrowing.

3. Early refunds for overpaid tax

If you've overpaid tax during the year, filing your return early can result in receiving your tax refund sooner. HMRC processes early returns quickly, meaning you could have your refund in your bank account months before the deadline.

Benefit:

Accessing your refund earlier gives you more flexibility to reinvest, save, or spend that money, rather than leaving it tied up with HMRC.

4. More time to correct errors

Filing your tax return early gives you ample time to spot and correct any mistakes. If you realise that you've made an error, you can amend your return up to 12 months after the submission deadline. Early submission gives you the peace of mind that any issues can be resolved without the added pressure of a looming deadline.

Benefit:

You can make adjustments without the fear of penalties or fines, ensuring your return is as accurate as possible.

5. Improved cash flow management

By knowing your tax liability early, you can manage your cash flow more effectively. This is particularly beneficial for self-employed individuals and small business owners who need to plan for large outgoings.

Benefit:

Early submission allows you to better align your finances, making it easier to plan for upcoming expenses and maintain a healthy cash flow.

6. Avoiding penalties

Missing the self-assessment deadline results in an immediate £100 fine, with additional penalties the longer you delay. Even if you have a valid reason for being late, it’s often easier to avoid penalties altogether by submitting your return early.

Benefit:

Filing early eliminates the risk of missing the deadline and incurring penalties, saving you money and potential legal headaches.

7. Access to better financial advice

If you complete your return early, you’ll have more time to consult with an accountant or tax adviser. They can provide tailored advice, highlight potential savings, and ensure you're making the most of any available reliefs or deductions.

Benefit:

With professional advice, you can optimise your tax position, potentially reducing your tax bill and improving your overall financial situation.

8. Reduced HMRC helpline wait times

During the busy period leading up to the January 31st deadline, HMRC’s helplines are often overwhelmed with calls, leading to long wait times. By submitting your return early, you can take advantage of quieter periods when HMRC staff have more time to assist with any queries or issues.

Benefit:

Early submission ensures that you can get help more quickly and efficiently if you need it, without the frustration of long wait times.

9. Avoiding system overload

HMRC’s online submission system can experience high traffic as the deadline approaches, leading to potential delays or technical issues. By filing your return early, you minimise the risk of encountering system crashes or slow processing times.

Benefit:

You can file your return smoothly and avoid the stress of potential technical glitches at the last minute.

10. Peace of mind

Perhaps the most valuable benefit of submitting your tax return early is the peace of mind it brings. With your self-assessment out of the way, you can focus on other aspects of your life and business without the tax deadline looming over you.

Benefit:

Completing your return early allows you to start the new year with a clear mind, free from the worry of unresolved tax matters.

When it comes to tax, trust TaxCalc every time.

For a simpler way to file your tax, download TaxCalc’s award-winning tax return software today!