January might seem a long way off, but if you're self-employed or filing a self assessment tax return for the 2024/25 tax year, now is precisely the right time to act.
At DWilkinson&Company, we work with hundreds of taxpayers across Rochdale and Greater Manchester, and those who file early tend to sleep a lot better!
Here's why you should consider filing your tax return now, not in a post-Christmas panic.
1. File now, pay later
You don't have to wait until January to submit your tax return. And crucially, you don't have to pay your tax bill immediately after filing.
Submit your self assessment return now and you'll still have until 31 January 2026 to pay what you owe. Filing early gives you clarity now, with breathing space to pay later.
2. Get refunds processed sooner
If you're due a tax rebate, for example, if you've overpaid tax or had work-related expenses, the sooner you file, the sooner HMRC will process your repayment.
In most cases, refunds are paid within a few weeks. There's no reason to let HMRC hang on to money that's rightfully yours.
3. Avoid a January cash flow crunch
By knowing your tax bill early, you can spread the cost. Instead of scrambling to find a lump sum in the New Year, you can put aside manageable amounts each month.
This is especially useful if you're self-employed or run a seasonal business. Planning now can save a last-minute borrowing headache in January.
4. Beat the rush and get your accounts back faster
Come December and January, accountants everywhere are swamped, and yes, DWilkinson&Company are no exception.
Send us your books over the summer, and we can turn them around quicker. You'll get your tax position confirmed early, and we'll have time to talk through any planning opportunities too.
5. You've got the paperwork to hand – for now
Most banks, pension providers and investment platforms send out statements soon after the end of the tax year in April. That means everything you need (P60s, dividend vouchers, interest statements, etc.) is likely sitting in your inbox right now.
If you wait until Christmas, those documents may be buried, deleted, or 'filed safely' somewhere you'll never remember. It's best to send them to us now, while they're still close at hand.
6. Bonus: more time for tax planning
Filing your return early can open the door to more effective tax planning. For example, have you got capital gains to consider? Are you claiming expenses? Do you want to make pension contributions before the end of the tax year?
The earlier we review your figures, the more time we've got to help you minimise your tax bill, legally and efficiently.
7. File now and get ready for change: Making Tax Digital is coming
If you're self-employed or a property landlord earning over £50,000 a year, the 2024/25 tax return will be your last under the current self-assessment system.
From April 2026, you will have to comply with Making Tax Digital (MTD) for Income Tax, a new, more frequent digital reporting tax regime. It means keeping digital records and submitting quarterly updates to HMRC throughout the year.
Filing early this year gives you time to prepare, ask questions, and start thinking about software options or support you'll need going forward. We can guide you through it and make sure your transition to MTD for Income Tax is as smooth as possible.
Based in Rochdale? Let DWilkinson&Company help you stay ahead
We specialise in helping self-employed individuals and small business owners across Rochdale manage their tax affairs without the stress. From getting your tax return sorted early to spotting opportunities to save, our team is here to make it simple.
Drop us a line today and let's get your 2024/25 tax return ticked off the to-do list and look at ways of reducing your tax bills. Please call 01706 249058 or email office@dwco.co.uk to arrange a free consultation.
