Self Assessment Tax Return – what are the benefits of filing this before 31 January 2024?

Date posted: 20th Sep 2023

HMRC statistics show that the majority of tax returns are filed in the two months before the deadline for filing the tax return.

If you need to file a Self Assessment tax return for 2022/23, you have until midnight on 31 January 2024 in which to do this, as long as you file online. However, we would encourage taxpayers to file their tax return early as it does have some benefits.


Due a tax refund?

If you think you might have paid too much tax in 2022/23, filing your tax return early will enable you to claim a refund sooner – you do not need to wait until January 2024. The money is arguably better in your bank account than in HMRC’s.


Better budgeting

Filing your tax return early will help you budget and if you have tax to pay, filing early will give you more time to put funds aside to meet your tax bill.

If your bill for 2022/23 is more than £1,000, unless 80% of it is deducted at source, for example under PAYE, you will need to make payments on account for 2023/24.

The first payment on account for 2023/24 is due by 31 January 2024, along with any balance remaining due for 2022/23 and any Class 2 National Insurance for that year. The second payment on account for 2023/24 is due by 31 July 2024. Each payment is 50% of your 2022/23 liability.


Struggling to pay?

By filing your tax return early, you will know in advance what you owe. If you know you will struggle to meet your tax bills, you can set up a Time to Pay agreement to allow you to pay your bill in manageable instalments.


Peace of mind

Filing your tax return early will give you the peace of mind that comes from knowing that the task has been done. It also means that you won’t risk a late filing fee of £100 for missing the filing deadline.


If you have any queries, please give us a call.


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