We all want to have a better handle on our money and there are often times when doing this requires complex financial planning with a deep awareness of the intricacies of tax law.
There are other times when you get a message from HMRC asking you to file a tax return and then you file that tax return.
For the 12 million taxpayers who need to file a Self Assessment tax return, now is the best time to do it.
Is it better to file my Self Assessment tax return now?
As soon as the tax year commences on 6 April, it is possible to file your Self Assessment tax return for the previous year and this must be completed by 31 January the following year.
You may hold off on completing your Self Assessment tax return if you do not have some of the information needed to make the filing.
However, you can start filling out the return with all of the information you do possess and then return later to finish it off.
This can help you keep up with it without risking making a mistake from either guessing or using incorrect information.
In fact, one of the main advantages of tackling your Self Assessment tax return now is that you can take your time with it.
Should you need to get through to HMRC to query anything, you will have the luxury of not having to compete with other taxpayers, all panicked about meeting an imminent deadline.
This also gives you scope for seeking professional financial advice if you want to learn more about your Self Assessment tax return.
Reliefs and allowances can be utilised to lower your tax bill, but these are subject to eligibility and you need time and support to understand whether any are of use to you.
Will I need to pay anything now if I file my Self Assessment tax return?
Filing your Self Assessment tax return does not change when you need to pay the amount owed.
For the 2025/2026 tax year, your tax will need to be paid in full by 31 January 2027.
As the deadline is fixed, all an early filing does is give you greater control over how and when you pay your bill.
Imagine that your tax bill is £1000: you would have a choice of splitting it across 10 instalments of £100 a month, starting in April, or waiting until January and giving HMRC a very generous late Christmas present.
Either option works, provided that you do pay it in full, but the flexibility to spread the cost can be beneficial for keeping your finances more consistent across the year.
If your circumstances have changed and you now get paid and taxed through PAYE, then this can factor into how you handle your Self Assessment tax return.
A tax bill below £3000 can be added to your PAYE and managed automatically, so that you no longer have to worry about it.
You will typically start paying it in the following tax year and it will be deducted from your wage automatically, along with the usual Income Tax.
We want to improve financial health and independence across the country as more people struggle with the cost of living.
Part of that is understanding how much control you can have over your finances when you take a proactive approach to managing your obligations.
Whether you are looking to get a better handle on your finances or you need clarity on changing tax positions, our team are here to help.
