Advantages of filing your 202324 tax return early

The 2023/24 tax year may feel like ancient history now, but if you haven’t filed your self-assessment tax return yet, there’s still time to reap some genuine benefits. At Severn Accounting, we’ve helped hundreds of businesses and individuals in Worcester and beyond, and we’ve noticed a clear pattern: those who file early tend to have fewer headaches come the January deadline. Here’s why getting your 2023/24 return submitted sooner rather than later makes solid financial sense.

Avoid the January Rush and Reduce Errors

The self-assessment deadline is 31 January 2025, and yes, HMRC will still accept returns up until that date. However, the closer you cut it to the wire, the more mistakes creep in. December and early January see a spike in rushed submissions—and that’s when costly errors happen. Whether it’s misplaced receipts, forgotten income sources, or simple data entry mistakes, pressure and haste are your enemies.

By filing now (or in the coming weeks), you give yourself breathing room to double-check your figures, gather any missing documentation, and address queries from your accountant without panic. If HMRC has questions about your return—and they sometimes do—you’ll have months to respond rather than days. This measured approach typically results in cleaner, more defensible tax records.

Get Your Tax Bill Sorted Earlier

One of the most practical advantages of early filing is knowing exactly what you owe (or what’s owed to you). If you’re due a refund, filing early means that money could be back in your bank account by Easter, rather than dragging into spring. Conversely, if you owe tax, filing early gives you time to plan payment or arrange a payment plan with HMRC if needed.

For the 2023/24 tax year, basic rate taxpayers face 20% income tax on profits between £12,570 and £50,270, with higher rates beyond that threshold. Directors and partners need to factor in National Insurance contributions too. If you’re expecting a significant bill, discovering this in October rather than January means you can budget properly and avoid scrambling for funds. It’s much easier to manage your cash flow when you’re not facing a surprise demand in late January.

Claim Any Allowances and Reliefs Before the Year Ends

Filing early is particularly important if you’re planning to claim capital allowances, trading allowances, or other reliefs. Whilst most of these can technically be claimed after the deadline, it’s far less stressful to get everything organised and submitted while you’re still in the mindset of year-end accounts. If you’re self-employed and your turnover is under £1,000, you might qualify for the £1,000 trading allowance—but you need to declare your actual income and expenses to HMRC to benefit properly.

Similarly, if you’ve had business losses, unused pension contributions, or marriage allowance eligibility, early filing means you won’t accidentally miss these opportunities. Once the tax year closes and you’re months into the next one, it’s easy to overlook possibilities.

Meet Your Professional and Legal Obligations

If you run a limited company, corporation tax returns must be filed within nine months of the year-end (typically 31 December 2024 for a year ending 31 March 2024). If you’re a company director, don’t conflate this with your personal self-assessment deadline. You’ll need both filed properly. Early submission of your company return, combined with an early personal tax return, puts you in good standing with Companies House and HMRC simultaneously.

For partnerships and trusts, the situation is similarly complex. Filing early reduces the risk of penalties and gives you a complete picture of your tax position across all entities you’re involved with.

The Penalty Risk

Let’s be direct: filing late comes with financial consequences. A penalty of £100 is applied automatically if your return arrives after 31 January 2025, increasing further if tax remains unpaid. Beyond the financial sting, late filing can affect your credit rating and may trigger compliance checks. There’s simply no advantage to leaving it until the last moment.

Final Thoughts

Early filing isn’t about being virtuous—it’s about being practical. You’ll sleep better knowing your tax affairs are sorted, your liabilities are clear, and you’re compliant with HMRC. Plus, you free up mental space to focus on running your business or managing your finances, rather than worrying about an impending deadline.

If you haven’t started on your 2023/24 return yet, now is genuinely the best time. The longer you leave it, the harder the information is to track down and the more stressful the process becomes.

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