Benefits of filing your tax return early Self-assessment tax returns are not due until 31 January 2027 but there are plenty of reasons to file early, whether or not you are due a repayment. Establishing your tax liability early not only removes the January rush to dig out paperwork, it also helps you manage cash-flow, reduces errors and assists current year tax planning. Regardless of when you file your tax return, the deadline for paying any additional tax is the normal due date of 31 January 2027.
Tax repayments If you are due a tax refund then it is advisable to file early as there have been delays and additional checks before the refund is released in recent years. HMRC are advising checks could take 12 weeks in their Check when you can receive a reply from HMRC tool.
Employees/Directors If you pay tax through PAYE there could be an error in your PAYE tax code. For example adjustments required for a loss of personal allowance for earnings over £100,000, high income child benefit charge for earnings over £60,000, benefits in kind from a previous job or tax relief from previous pension contributions. Once you have filed your tax return then changes should be reflected in your current year tax code. If you make additional payments on account through self-assessment and submit before 31 July, then the July payment on account can be adjusted using the actual figures. If you submit before 30 December 2026 and owe less than £3,000 then any additional tax can be collected through your tax code. Self-employed If your income is fluctuating from year-to-year, then there may be cash-flow benefits of submitting early. Your payments on account due in January and July are based on the prior year tax bill, so if you submit actual figures you can then revise your July payment on account.
Making Tax Digital If you are a sole trader or landlord then establishing your start date for Making Tax Digital will help you get ready by engaging an accountant, choosing software and maintaining digital records.
Mortgage If you apply for a mortgage your lender may require proof of income from HMRC or your accountant based on taxable income from the most recent tax return. Interest/penalties Late tax returns are subject to a £100 filing penalty regardless of any tax liability, then £10 daily penalties start to accumulate after three months with additional penalties due after six months and twelve months. Interest is also due on tax paid late.
Reduce errors If you retain your bank statements, P60, P11D, dividend vouchers etc., then completing your tax return is less onerous and expensive errors and last minute panics are less likely to occur.
Tax planning Filing early assists future tax planning, especially for those with savings or investment income or owner-managed businesses and landlords.
