Getting your tax return out of the way early

There is a widespread belief that filing a self assessment return early means paying the tax early. It does not. The payment dates are fixed at 31 January and 31 July regardless of when the return is submitted, so a return filed in July gives you six clear months to plan for a liability you already know the size of.

The practical benefit is time. Records are fresher, banks and brokers still have statements to hand, and there is room to ask questions rather than send whatever is nearest to the deadline. Where a repayment is due it is issued shortly after filing rather than months later.

Early filing also gives space to make sensible decisions before the year closes: pension contributions, timing of dividends, or whether a payment on account can be reduced because profits have fallen. Those conversations are only useful if they happen before January.

Points to note

• Payment deadlines do not move if you file early
• Repayments are received sooner
• Payments on account can be reviewed and reduced where profits have fallen
• More time to gather rental, dividend and capital gains information
• No last minute scramble for HMRC login details