Did you know you can submit your Self Assessment tax return for the 2022 to 2023 tax year from 6 April 2023? While the deadline isn't until 31 January, filing your taxes early can provide numerous benefits. This article explores why more people are filing their tax returns early and how you can join them.
The Growing Trend of Early Filing
HMRC has recently revealed that the number of Self Assessment customers who choose to file their tax return on the first day of the tax year (6 April 2023) has more than doubled since 2018. This increase indicates that more people are recognising the advantages of early filing. Here's why they're doing it and why you should join the growing numbers of early filers.
Benefits of Early Filing
- Early filing does not mean early payment: The 31 January deadline for payment remains unchanged. Filing early lets you know your tax bill, which can help you plan.
- Know what you owe: Knowing your tax bill lets you arrange your finances appropriately before the Self Assessment deadline on 31 January.
- Set up a budget plan: HMRC offers a Budget Payment Plan facility, allowing you to choose how much and how often you want to pay by Direct Debit.
- Get any refund faster: If you've paid too much tax, HMRC will let you know once your tax return has been processed and arrange for refunding any overpayment.
- Have time to understand if you need help and to get that help: Filing early means, you have more time to look into your payment options if you cannot pay in full by the deadline.
- Proof of income: Completing your tax return sooner provides proof of income, which is required when applying for a mortgage, loan, lease, or accessing certain benefits and schemes.
- Goodbye to last-minute stress: Avoid the panic and anxiety of an impending deadline by filing your tax return early.
Tips for Filing Your Tax Return Now
HMRC offers the following additional advice for those interested in getting started with their tax return right now:
- Register and get your Unique Taxpayer Reference (UTR): If this is your first time completing Self Assessment, register and obtain your UTR.
- Think digital first: 97% of customers filed their Self Assessment tax returns online last year. HMRC has lots of helpful advice on how to complete your Self Assessment on GOV.UK.
- Beware of scammers: Tax scams come in many forms. Make sure to take your time and check HMRC scams advice on GOV.UK if you need clarification.
- Protect your login details: Don't share your HMRC login with anyone, including your tax agent, if you use one.
7 Benefits of Filing Your 2022-23 Tax Return Before November
- Plan your cash flow and finances: Knowing how much you need to pay allows you to manage your money better.
- Beat the rush: Avoid the last-minute stress and difficulty reaching HMRC during their busiest time of year.
- Proof of income: Your tax return provides the necessary documentation for financial applications and benefits.
- Reduce your Self Assessment payment on account: Knowing your tax bill allows you to lower your payment on account potentially.
- Peace of mind: Complete your tax return early to focus on other essential aspects of your life.
- Claim a refund faster: Receive any refunds you're due more quickly.
- Avoid late penalties: Eliminate the risk of penalties by submitting your tax return ahead of schedule.
In conclusion, there are numerous advantages to filing your Self Assessment tax return early. So why not start today and enjoy the benefits of early filing?
