April has passed, which means we’ve just started a new tax year. Do you know what that also means? You’ve got until January 31st 2023 to file your 2021/2022 tax return. 

We know, it’s horrible. It needs to be done, but you put it off again and again, hoping that it will somehow do itself. You are not alone in your procrastination - millions of people submit their returns late every year. But, for what it’s worth, it makes sense to get ahead of the game and file nice and early. Let us tell you why. 

It takes time to register. 

You can’t simply go online and file a Self Assessment – HMRC must expect a return from you. This means, if it’s your first year of trading, you must register ahead of time. Doing this can take a fortnight or so outside of peak times, but if you wait until the January rush, it could take much longer. 

Time to save 

Just because you file your self assessment early doesn’t mean you have to pay your tax bill until January 31st. If you file in June or July, you’ll have a full six months to budget for any tax liability. Leaving it until January could leave you without enough money to pay your taxes and you’ll be subject to one of HMRC’s on-the-spot fines. 

Dodge penalties 

When it comes to penalties, filing early gives you plenty of time to address any issues and avoid HMRC’s late filing penalties. 

These penalties include an immediate £100 fine if you miss the January 31st deadline, plus another £10 per day (for up to 90 days) if you haven’t filed by 30th April. 

These are just a few reasons why it makes sense to beat the rush. If you have time to file your self-assessment, do it now and save yourself unnecessary stress and hassle!