10 benefits of filing your 2024/25 tax return early

As the 2024/25 tax year has now come to an end, individuals who need to file a Self Assessment tax return for that year can now do so. Although the return does not have to be filed online until 31 January 2026, there are compelling reasons to submit yours well before the deadline. Filing early removes unnecessary stress and unlocks several financial and administrative benefits that can make a real difference to your tax position.

At Severn Accounting, we work with many Worcester-based sole traders, freelancers, and investors who’ve discovered that getting their tax return in early is one of the smartest decisions they can make. Here are ten reasons why you should consider doing the same.

1. Avoid the January Rush and Technical Issues

HMRC systems experience heavy traffic in the weeks leading up to 31 January. Filing early means you won’t be competing with hundreds of thousands of other taxpayers, reducing the risk of website slowdowns, timeouts, or technical glitches that could prevent submission. Early filing also means fewer stress-related errors when you’re rushing against the clock.

2. Reclaim Tax Credits and Overpaid Tax Promptly

If you’re entitled to a tax refund — perhaps because you’ve overpaid tax or qualify for certain reliefs — submitting your return early means HMRC can process it faster. Depending on your circumstances, you could receive a refund within weeks rather than months. For many small business owners and contractors, that cash flow boost can be invaluable.

3. Identify Tax Planning Opportunities

Filing early gives you breathing room to review your tax position and identify opportunities you may have missed. If you’ve underpaid tax or realised you could have claimed additional allowances, you’ll have time to adjust before the deadline. This is particularly relevant for those with multiple income sources or complex tax situations.

4. Extend Your Planning Window for the 2025/26 Tax Year

Once your 2024/25 return is submitted, you’ll have a clearer picture of your current tax liability. This means you can make more informed decisions about pension contributions, ISA placements, and Business Investment Relief claims before the new tax year starts on 6 April 2025.

5. Reduce Your Risk of HMRC Penalties

Filing late can trigger a £100 penalty if your return is submitted after 31 January 2026, even if you don’t owe any tax. Additional penalties apply if the return remains outstanding after three months. By filing early, you eliminate this risk entirely — and demonstrate compliance to HMRC, which can be beneficial if you’re ever selected for enquiry.

6. Meet Mortgage, Credit, and Visa Applications

Lenders increasingly request recent tax returns when assessing applications for mortgages, business loans, or credit facilities. Having your 2024/25 return filed and processed several months before you need it puts you in a stronger position. Self-employed applicants, in particular, benefit from showing HMRC-approved accounts.

7. Minimise the Risk of an HMRC Enquiry

Whilst submitting early doesn’t prevent HMRC from enquiring into your return, it does reduce the likelihood of being selected simply because your return was filed late or incomplete. Prompt, accurate filing signals good record-keeping practices.

8. Obtain Peace of Mind

The psychological benefit of completing your tax affairs early shouldn’t be underestimated. Many business owners and self-employed individuals find that submitting their return early in the tax year helps them sleep better and allows them to focus on growing their business rather than worrying about an outstanding deadline.

9. Allow Time for Professional Advice

If complications arise — perhaps you’ve received a notice to file, or you’re unsure whether certain expenses are deductible — early filing gives you time to seek professional guidance without feeling pressured. Your accountant can give you thorough, considered advice rather than rushing through a deadline scramble.

10. Keep Better Records and Maintain Discipline

Filing early encourages you to keep meticulous records throughout the year, rather than scrambling to find receipts and invoices in January. This discipline benefits you year after year and makes future returns quicker and easier to complete.

Getting Started

The sooner you gather your records and liaise with your accountant, the sooner you can enjoy these benefits. Whether you’re a sole trader, partner, or landlord with rental income, early submission is a straightforward way to simplify your tax life.

For tailored advice, contact Severn Accounting — we’re here to help.