When it comes to Self-Assessment tax returns, many people leave everything until January.
But waiting until the last minute can create unnecessary stress, increase the risk of mistakes and leave you scrambling to find money for an unexpected tax bill.
The deadline for filing your online 2025/26 Self-Assessment tax return is midnight on 31 January 2027. However, there can be several advantages to filing much earlier.
So, why wait?
Before You File Your Tax Return
Before submitting your return, it’s important to make sure you have all the information you need.
Depending on your circumstances, this may include:
- Your P60
- Details of employment income
- Pension income information
- Payrolled benefits
- P11D details
- Records of self-employment or property income
Most taxpayers should receive their P60 by 31 May 2026.
Once you have everything ready, filing early could work very much in your favour.
- Avoid the January Rush
Let’s be honest — January is stressful enough without a looming tax deadline.
Filing early means:
- One less thing to worry about
- No last-minute panic
- Less risk of rushing and making mistakes
Many business owners find that getting their tax return sorted early provides real peace of mind.
- Prepare Earlier for Making Tax Digital (MTD)
If you have trading or property income, filing early can also help you prepare for future tax changes.
From 6 April 2027, some taxpayers will need to comply with Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).
This will apply if your combined gross trading and property income is £30,000 or more in 2025/26.
By filing your return early, you’ll know sooner whether these rules will affect you — giving you more time to prepare your systems and processes.
- Know Your Tax Bill in Advance
One of the biggest benefits of filing early is certainty.
Once your return is complete, you’ll know:
- How much tax you owe
- When it’s due
- Whether payments on account apply
This gives you more time to budget and avoid a nasty surprise in January.
For many business owners, cash flow planning is much easier when tax liabilities are known well in advance.
- Receive Any Tax Refund Faster
If HMRC owes you money, filing early means you can usually receive your refund much sooner.
Why leave your money sitting with HMRC longer than necessary?
An earlier refund could help with:
- Business expenses
- Household costs
- Savings
- Reinvestment into your business
- Review Your Payments on Account
If you make payments on account, filing your return early allows you to check whether those payments still reflect your current income levels.
In some cases, you may be able to reduce future payments and improve short-term cash flow.
- Spread Tax Through Your Tax Code
Here’s a benefit many taxpayers don’t realise exists.
If:
- You file your return before 30 December 2026
- You owe £3,000 or less
…you may be able to have the tax collected gradually through your 2027/28 tax code instead.
This effectively spreads the cost over the year and can feel much more manageable than a single lump-sum payment.
- Help Support Mortgage Applications
If you’re applying for a mortgage, lenders will often want proof of income.
A completed tax return can help provide:
- Evidence of earnings
- Confirmation of taxable income
- Documentation for mortgage affordability checks
Filing early can help ensure everything is ready when you need it.
Don’t Leave Your Tax Return Until January
Every year, thousands of people leave their tax return until the final weeks before the deadline.
But filing early can reduce stress, improve financial planning and even help you access refunds or finance sooner.
At Jon Davies Accountants, we help business owners and individuals across Liverpool and the UK complete their tax returns accurately and efficiently — without the January panic.
If you’d like help preparing your 2025/26 tax return or planning ahead for Making Tax Digital, get in touch with Jon and the team today.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk