HMRC are encouraging tax payers to not wait and file their Self Assessment tax return early.
They state:
You do not have to wait until 31st January 2025 (the filing deadline) to do your Self Assessment tax return – as soon as the tax year ended (5th April 2024), you can submit your tax return at a time that suits you.
HMRC state that almost 300,000 early birds filed their tax return in the first week of the tax year. Almost 70,000 filed their return on the opening day this year (6th April 2924) and HMRC is encouraging people to do it early and not to leave it until 31st January.
They claim doing it early has benefits:
- get peace of mind and avoid the stress of doing it at the last-minute
- you’ll know what you owe, so you can budget for the year and pay your tax bill in instalments if you need to – you can also get help if you find you can’t pay
- you can find out sooner if you’re owed a refund – and you’ll get it sooner too
- filing early provides proof of income which you may need for a mortgage, loan or if you want to claim benefits
- HMRC phone lines get busy in the run-up to the Self Assessment deadline in January, SA filers can use the HMRC online services to do what they need to do quickly and easily
Who needs to complete a Seif Assessment return?
People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if:
- they are a self-employed individual with an income over £1,000
- they have received any untaxed income over £2,500
- they are renting out one or more properties
- they claim Child Benefit and they or their partner have an income above £50,000
- they are a partner in a partnership
- their taxable income earned from savings and investments is more than the £10,000 personal savings allowance
- their taxable income earned from dividends is more than £10,000
- they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold
A full list of who needs to complete a tax return is available.
If you’ve paid too much tax
Probably the real reason for filing early is for those who have overpaid tax and are due a refund, If they have overpaid tax during the 2023 to 2024 tax year (for example if they have already paid what tax they owed for the year through their payments on account), HMRC will let them know how much they have overpaid when they submit their Self Assessment tax return, and may due a refund.
What are you waiting for?
Completing the SA filing does require gathering of payment information. One piece of information used is the employer issued form P60.
If they are employed they will have to wait until you receive your P60 so they can accurately complete the tax return. However, the HMRC
The deadlines
The deadline to submit your completed 2023 to 2024 tax return online and pay any tax you owe is 31st January 2025.
Although those with underpayments do not have to pay any outstanding tax until 31st January 2025, those who are employed and paid through PAYE may be eligible to pay anything they owe through their PAYE tax code if they submit their tax return by 30th December 2024.
Opinion
So the primary reason for filing early is for those who have overpaid Income Tax and are due a refund. Otherwise there is more limited advantages.
For those who owe more tax than has been collected, to have this collected via the tax code, the filing must take place by 30th December 2024.
However, for those who are happy to clear and pay any outstanding tax due by the 31st January 2025 payment deadline, the SA filing can be undertaken later and up until that statutory submission deadline.
PAYadvice.UK 20/5/202&