If you’re mulling over the idea of submitting your Self Assessment tax return for 2022/23 ahead of the 31 January 2024 deadline, you’re not alone. HMRC has been advocating for this approach. Let’s explore the benefits of doing so.

Anticipating a Tax Refund?

If you suspect you’ve overpaid your tax for the 2022/23 period, an early tax return could mean claiming your refund sooner. There’s no need to wait until January 2024. After all, it makes more financial sense for that money to be in your account rather than with HMRC.

Improved Financial Planning

Submitting your tax return earlier can provide clarity for your financial planning. If you owe tax, the extra time can help you set aside funds systematically. Just a note: if your tax and Class 4 National Insurance bill for 2022/23 exceeds £1,000 and less than 80% has been deducted from sources like PAYE, you’ll be looking at making payments for 2023/24. The first instalment is due by 31 January 2024, which includes any outstanding amounts for 2022/23 and any Class 2 National Insurance for the same year. The subsequent payment, accounting for 50% of your 2022/23 liability, is expected by 31 July 2024.

Payment Flexibility

By filing early, you get a clearer picture of your financial obligations. If making a lump sum payment seems challenging, HMRC’s ‘Time to Pay’ agreement allows for structured payments. Depending on your circumstances, this might even be arranged online.

Easier Access to Support

Although HMRC temporarily closed their Self Assessment helpline over the summer, they’ve since resumed operations from 4 September. Historically, January tends to be the busiest month for their helpline. Filing earlier ensures that if you need assistance, you can access it without long wait times.

Peace of Mind

Completing your tax return in advance provides a genuine sense of relief. Not only do you eliminate one major task from your to-do list, but you also avoid potential late fees. Being proactive with your tax return not only offers financial clarity but also ensures you’re well-prepared for the year ahead.

 

 

 

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Any questions?

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