HM Revenue and Customs (HMRC) has reported that the number of self assessment customers who chose to file their tax returns on the first day of the tax year (6 April 2023) has more than doubled since 2018.
Over 77,500 customers completed their tax return for the 2022 to 2023 tax year on 6 April 2023 which was the first available day for filing. HMRC stats show that there’s been a healthy year on year increase with 37,000 tax return filers on the same day in 2018 as a comparison.
By filing early customers have avoided the stress of last minute filing which 860,000 people experienced by submitting their tax return for the 2021 to 2022 tax year on the deadline day of 31 January 2023.
Benefits of submitting your 22/23 tax return early
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“Filing your Self Assessment early means you can spend more time building your business or doing the things that you enjoy and less time worrying about completing your tax return. To find out how you can start yours and get help with budget planning, search ‘Self Assessment’ on GOV.UK.”
So you can avoid the stress of submitting your tax return closer to the deadline than you maybe should but other benefits include:
Claiming your tax refund through self assessment early
The sooner you submit your tax return the sooner you can find out if you are owed money by HMRC for the 2022 to 2023 tax year.
If you are owed a tax rebate you can claim the refund back from HMRC at the earliest opportunity.
Make paying HMRC what you owe easier
Another earlier filer benefit is knowing how much tax you owe so you can set up a budget plan to help spread the cost and manage payments.
The Budget Payment Plan allows you to choose how much and how often you want to pay which gives you more control of managing your tax bill.
Decrease the risk of self assessment penalties
HMRC automatically send out penalties for late tax return filing and for late payment of income tax owed to HMRC.
Taking advantage of the benefits of sending in your tax return early means you reduce the risk of submitting your tax return after the deadline.
Cancel your 22/23 tax return if you don’t need to file
Individuals who are unsure if they need to file a tax return can use the free online check if you need a tax return tool.
If you don’t need to file a 22/23 tax return and assume HMRC already knows you run the risk of still being sent a tax return and incurring late filing penalties in the future.
Self assessment may be required for many reasons like:
- Being newly self employed with earnings of more than £1,000.
- You have received untaxed income.
- You are claiming child benefit and their income or their partner’s income is over £50,000.
It’s imperative to inform HMRC in case of any changes in your details or circumstances such as a new address or name or if you are no longer self employed.
You shouldn’t assume that someone else will inform HMRC on your behalf so if you don’t need to file 22/23 self assessment tax return let HMRC know as soon as you can.
In the same announcement HMRC advises customers to remain cautious of tax scams and safeguard their personal information. You can find out more about HMRC scams and how to avoid them in our free HMRC tax scams guide.
