The deadline for filing your 2023 Self Assessment Tax Return online and to pay any tax you owe is 31 January 2024, however you don’t have to wait until then as you can actually file as soon as the tax year ends.

This is exactly what 77,500 taxpayers did, submitting their tax returns on 6 April 2023!

If you file your Tax Return early you do not have to pay your tax bill immediately, you will just know how much you owe and can then consider your payment options.

Here are some of the benefits to filing early:-

• Peace of mind

Avoid the stress of last-minute filing and plan ahead

• Find out how much tax you owe as soon as possible

You can plan ahead and budget for your tax bill or alternatively get help in good time if you find you can’t pay in full by the payment deadline

• Get your refund sooner

If you’re owed a refund, the sooner you submit your Tax Return the sooner you’ll get your refund

• There could be scope to reduce your 31 July 2023 payment on account

If you make advance payments towards your tax bill through payments on account and you know that your tax bill will be lower for the 2022/23 tax year than for the previous tax year, then you can still make a claim to reduce your July 2023 payment on account

• HMRC phone lines get busy

In the run-up to the Self Assessment deadline in January it can be very difficult to get hold of HMRC should you need to and very frustrating

How and when to pay your bill

You don’t need to pay your Self Assessment tax bill immediately, even if you file your tax return early. You will just know how much you owe and can then choose a payment option that works for you.

Find out how to Pay your Self Assessment tax bill: Overview – GOV.UK (www.gov.uk)

If you’re worried about your tax bill

If you are unable to pay your bill in full by the payment deadline, it is best to consider the options available to you as early as possible.

You may be able to set up a “Time to Pay arrangement “and in certain situations you can even do this online without having to speak to HMRC.

Find out more If you cannot pay your tax bill on time: Overview – GOV.UK (www.gov.uk)

Budgeting to pay your tax bill

If you would like help to plan ahead for your tax payments, a member of our tax team can help advise how much you need to set aside each month to cover your expected tax liabilities.

This can be particularly helpful if you have recently become self-employed or maybe even a director of a company who is now in receipt of dividend income.

This can then be taken a step further to “set up a budget payment plan” using your HMRC online account or you may simply choose to set funds aside in readiness for the payment deadline(s).

If the amount in your budget payment plan does not cover your next bill in full, you will need to pay the difference by the payment deadline.

Find out more about paying weekly or monthly.

Please note that a budget payment plan is different from payments on account, which you normally make in January and July.

Not sure if you need to complete a Self Assessment return?

You can check if you need to complete a Tax Return by using the following tool:-

Check if you need to send a Self Assessment tax return – GOV.UK (www.gov.uk)

You may need to do Self Assessment if you:

• are newly self employed and have earned over £1,000
• are a new partner in a business partnership
• have received any untaxed income
• are claiming Child Benefit and you or your partner have an income above £50,000