As the Self Assessment deadline approaches, many individuals and business owners begin to think about their tax returns.
Unfortunately, for too many people, that thinking starts far too late. Every January, accountants and advisers across the country are inundated with last-minute requests, frantic calls, and missing paperwork as the tax filing deadline looms. Preparing early not only saves time and stress but can also help you avoid mistakes and even uncover opportunities to save money.
Here are seven key things to keep in mind when organising the information to prepare your tax returns and why getting started early is one of the smartest financial decisions you can make.
1. Start early – avoid the January rush
The single best piece of advice for anyone preparing their tax return information is simple: start early. The rush to meet the 31st of January deadline creates unnecessary pressure, both for you and for your accountant. During January, professional advisers are juggling hundreds of clients who have all left things to the last minute, meaning you may not get the attention your return deserves.
Starting early means your accountant can focus on your affairs carefully and identify any opportunities for reliefs, allowances, or rebates that might otherwise be overlooked in the rush. In some cases, filing early can even lead to a quicker tax refund if you’ve overpaid during the year. So, rather than joining the annual January scramble, give yourself, and your accountant, the gift of time.
2. It can take time to collect all the right documents and paperwork
A key reason for starting early is that gathering everything you need can take much longer than you think. Your P60 or P45, dividend vouchers, bank interest statements, pension information, and details of any property income or capital gains all need to be accounted for.
If you are self-employed or a company director, you’ll also need records of business income and expenses, possibly alongside partnership statements or rental accounts. Waiting until January to begin this process almost guarantees delays, especially if you need to request missing information from banks, investment providers, or employers who may also be facing a surge in requests.
Starting early gives you time to check that your records are accurate, complete, and ready to go without the panic of an impending deadline.
3. Budget across the year
Tax bills can sometimes come as a surprise, particularly for those with variable income, multiple income sources, or payments on account. One of the greatest advantages of preparing your tax return early is that it gives you visibility over your tax position well before payment is due.
By calculating your tax liability months in advance, you can plan your finances and budget more effectively throughout the year. This is especially important for business owners or those who are self-employed, as it allows you to set aside funds gradually instead of facing an unwelcome lump sum in January.
Starting early gives you control and clarity, ensuring that your cash flow remains healthy and predictable.
4. Rest assured that it’s done
There’s a unique peace of mind that comes from knowing your tax return is complete, accurate, and filed. Leaving it until the last minute can lead to nagging doubts: Did I include everything? Did I claim all my reliefs? Will it be submitted on time?
By preparing and filing early, you eliminate those worries.
You’ll have time to review your return carefully and discuss any uncertainties with your adviser. Instead of dreading January, you can enter the new year confident that your tax affairs are in order and that you haven’t missed anything important.
5. Avoid penalties for late filing
HMRC imposes strict penalties for late submissions, and these can add up quickly. Even if your return is just one day late, you’ll face an automatic £100 fine. After three months, daily penalties may apply, and the longer you delay, the steeper the costs become.
What’s more, late filing can increase your risk of errors or missed information, especially if you’re rushing. These mistakes can trigger HMRC enquiries or adjustments, potentially leading to further costs or stress.
By getting your return completed and filed early, you can avoid all of these issues entirely. It’s one less thing to worry about and one less bill to pay.
6. HMRC is stretched – especially in January
Every January, HMRC receives millions of last-minute submissions and enquiries. This means that if you need to contact them with a question, update, or clarification, it can take weeks to get a response.
Starting early means you can engage with HMRC well before the busy season. Whether you need to correct previous years, confirm payment on account figures, or register for new tax obligations, doing so early helps avoid the bottleneck that happens every January.
A little foresight can save you a lot of frustration, and ensure that any correspondence or refunds are processed without delay.
7. Your advisers will have more time for you
Finally, when you start early, your accountant or tax adviser will have more time to focus on your individual circumstances. This is particularly valuable if your tax affairs are complex. For example, if you have overseas income, investments, multiple properties, or are a company director.
By engaging early, you can have more meaningful conversations about tax planning, reliefs, and long-term strategy, rather than simply compliance. Your adviser will also be able to identify opportunities for legitimate tax savings or improvements in record-keeping before the year-end, helping you make smarter financial decisions.
Need help getting started?
At Hillier Hopkins, our experienced tax advisers are here to make the process smooth, efficient, and worry-free. Whether you’re self-employed, a business owner, or simply looking for expert guidance, we can help you prepare your tax return accurately and on time, and even explore ways to reduce your tax bill.
Get in touch with us today to get ahead of the January rush and ensure your tax affairs are in expert hands.
