We can start filing your self-assessment tax returns once the 2025 tax year is over after the 5th of April 2025. Now is the time to get prepared! Here are a few things to think about which will be discussed in more detail: Payments on Account, Basis Period Reform, benefits to filing early, Construction Industry Scheme (CIS), penalties and much more.
Benefits of filing early
It's important to make sure you are prepared for your 2025 tax return so that you can take advantage of all the benefits that filing early brings. For example, filing early in April and finding out your January 2026 tax bill will give you lots of time to prepare and remove the possibility of any nasty surprises. If you work in the construction industry and have tax paid through CIS, filing early can mean a quicker rebate from HMRC.
Similarly, if you pay payments on account and your tax bill is less than last year, then filing before your second payment on account is due (31st July 2025) may result in that payment being reduced and in some cases, if your profit has really fallen, a tax rebate!
There are many other benefits and the ones above can be discussed in more detail, if you are interested, I would suggest reading our specific article about it which can be found here https://www.shortandsons.co.uk/post/file-your-tax-return-early
Basis Period Reform
In 2024 HMRC made sure everyone who is self-employed now report their earnings up to the 5th of April. If you were one of the people affected by this, please note that we will require your earnings information from the 6th of April 2024 up until the 05th of April 2025 instead of the dates you reported previously, as you will now be in line with the tax year.
Avoiding Penalties
If you haven't yet filed your 2024 tax return, it’s crucial to act now to prevent penalties from increasing over time.
While the Bank of England cut its base rate on 6th February 2025, leading to a slight reduction in HMRC’s penalty interest rates, fines can still add up quickly. Taking action now can help prevent unnecessary costs and financial stress.
If any of the above applies to you or you need help with the upcoming tax year, feel free to contact our team today.