Beat the Rush: Why Filing Your Tax Return Early Pays Off
Every January, the same story plays out where thousands of taxpayers rush to meet the Self-Assessment deadline. But a growing number of people are filing their tax return earlier. HMRC recently reported that almost 300,000 taxpayers filed their return within the very first week of the tax year opening, this is almost 10 months ahead of the deadline. For 2025/2026 tax year self-assessed individuals were able to submit their tax returns from the 6th April 2026 onwards, with the deadline falling on 31 January 2027.
There are many benefits to filing your tax return early. A significant one is that if you have overpaid tax, you will receive the refund a lot sooner. When your return has been processed any money owed to you can be claimed back. This means you won’t have to wait for money which is rightfully yours. As the filing window runs for around 10 months, filing early rather than close to the January deadline could mean receiving your refund up to 8-10 months sooner.
In addition to receiving your refund earlier, submitting your tax return early can give you peace of mind, knowing you have got it out of the way well ahead of time. Rather than facing a big rush for the January deadline, early filers can put that time and energy into growing their business, or into the things they’d genuinely rather be doing.
Furthermore, this will also help you plan your finances more efficiently. Knowing your tax liability well ahead of time also means you can spread the cost, rather than being hit with one large lump sum in January. HMRC’s Budget Payment Plan lets taxpayers set up weekly or monthly direct debits towards their Self-Assessment bill, making it much easier to stay on top of cash flow throughout the year.
There are a number of reasons why an individual may need to file a tax return for 2025/2026 tax year. This includes those who are self employed with trading income exceeding £1,000. Individuals who have received over £500 of untaxed bank interest, are renting out property, or are in a business partnership also fall into this category. Also, individuals who have sold shares or property at a gain.
Although the deadline for filing isn’t until 31 January 2027, there’s no need to wait. Getting ahead of it now will offer greater financial control and peace of mind.
Ciaran McCarroll is a trainee Accounts Technician at Abac, Chartered Accountants.
This article is for general information only. You are recommended to seek professional advice before taking action on the basis of the contents of this article.
