Taxation

10 Smart Reasons to File Your Tax Return Early: Why It Pays Off 

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On April 4, 2025
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The deadline to file your online Self-Assessment tax return and pay any tax owed for the 2024–25 tax year is 31 January 2026. But waiting until the last minute isn’t just stressful—it could cost you money. Filing early comes with several practical and financial advantages. 

Here’s why getting ahead of the game makes sense, plus 10 key benefits of submitting your tax return early: 

1. You Don’t Have to Pay Tax Any Sooner 

  • Submitting your return early doesn’t mean you have to pay early. The payment deadlines remain the same: 
  • 31 January 2026 – Balance owed and first payment on account (if applicable) 
  • 31 July 2026 – Second payment on account (if applicable) 
  • So, early filing = more time, not early payments. 

2. You’ll Get Refunds Faster 

  • If you’re owed a tax refund, filing early means getting your money back sooner. HMRC doesn’t wait until January to pay refunds—so why should you wait to claim what’s yours? That money could be earning interest in your bank account instead of sitting with HMRC. 

3. Better for Budgeting and Cash Flow 

  • Knowing how much tax you owe well in advance helps you plan ahead, manage your cash flow, and start setting money aside. Plus, if your bill is under £3,000 and you file by 30 December 2025, you may be able to pay through your tax code—spreading payments across your wages or pension. 

4. More Time to Correct Errors 

  • Everyone makes mistakes. But if you file early, you have a longer window to fix any errors. You typically have 12 months from 31 January after the tax year ends to amend your return. The earlier you file, the more time you’ll have to review and revise if needed. 
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5. Less Stress, Fewer Errors 

  • Leaving things to the last minute can lead to rushed work and costly mistakes. Filing early gives you time to gather documents—especially important if you’re dealing with crypto transactions, exchange reports, or wallet histories. A calm approach leads to a more accurate return. 

6. Easier to Reach HMRC 

  • Trying to contact HMRC in December or January? Good luck. Their phone lines are notoriously jammed during peak season. Filing early avoids that scramble—plus, any refunds due will process faster when HMRC isn’t overwhelmed. 

7. More Time for Tax Planning 

  • With the current tax year running until 5 April 2026, filing early gives you more room to take advantage of available tax reliefs and allowances. The sooner you get your return sorted, the easier it is to plan and optimise your tax position for the future. 

8. Shorter Tax Enquiry Window 

  • HMRC has up to 12 months from the date you file to open a tax enquiry. So, if you file early, your enquiry window closes earlier too—giving you peace of mind sooner that your affairs are in order. 

9. Support AML Compliance for Crypto Gains 

  • Want to use your crypto profits or provide income proof to banks or solicitors? An early tax return helps verify your earnings and supports Anti-Money Laundering (AML) compliance requirements. It’s a smart move, especially for those with significant digital asset activity. 
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10. Avoid Penalties 

  • Missing the deadline can result in hefty fines. Here’s what late filers might face: 
  • £100 immediate fine after 31 January 2026 
  • £10 per day (up to 90 days) if still unfiled after 30 April 
  • £300 or 5% of the tax due (whichever is higher) after 3 more months 
  • Another £300 or 5% after 6 months 
  • Up to 100% of the tax owed if HMRC believes you deliberately delayed 
  • On top of that, late payment interest is increasing. From 6 April 2025, HMRC’s late payment interest will rise to the Bank of England base rate + 4%. That means interest could be as high as 8.5%—a costly price for procrastination. 

Take the Stress Out of Tax Season 

  • Filing a Self-Assessment tax return doesn’t have to be a headache. At My Crypto Tax, we specialise in making the process seamless, especially for crypto investors, entrepreneurs, and business owners. Our expert accountants and tax advisors can help you file early, understand what you owe, and ensure you get your refund fast if you’re due one. 

Let us take the pain out of tax time—so you can get on with what you do best. 

FAQ’s

Filing early helps you get faster refunds, reduces stress, improves budgeting, and allows more time to fix errors. It also lowers the risk of HMRC penalties and supports better tax planning.

Yes. You can amend your tax return up to 12 months after the filing deadline. Submitting early simply gives you more time to review and correct any mistakes.

DISCLAIMER

© My Accountancy Team 2025 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. My Accountancy Team Ltd t/a mycryptotax.co.uk, cannot be held responsible for the consequences of any action or the consequences of deciding not to act.

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