Avoid Last-Minute Tax Stress: 10 Early Filing Benefits for 2024–25

I Hate Numbers: Simplifying Tax and Accounting

Let’s be honest—nobody looks forward to tax season. However, leaving your return until January could mean unnecessary stress, missed opportunities, or even money left on the table. Filing your 2024-25 tax return early, on the other hand, brings more than peace of mind. It gives you financial clarity, greater control, and even potential savings.

In this week’s episode of the I Hate Numbers podcast, we share 10 powerful reasons why getting ahead of your tax obligations is one of the smartest financial moves you can make. Whether you're self-employed, a freelancer, or a landlord, early filing can seriously improve your business and personal finances.

Main Topics & Discussion

What is Early Tax Filing and Why It Matters

Early filing means submitting your self-assessment tax return well before the 31st January 2026 deadline for the 2024-25 tax year. It’s optional, but it brings clarity, helps avoid last-minute chaos, and often leads to better tax decisions.

10 Reasons to File Your Tax Return Early

1. Remove the Stress Early

Tax season doesn’t have to mean panic. Filing early clears the task from your to-do list and lets you enjoy the holiday season stress-free.

2. Know What You Owe HMRC

Early filing gives you a confirmed tax bill months in advance. No nasty surprises. No guessing. And plenty of time to budget or plan a repayment if needed.

3. Spread Tax Payments Through PAYE

If you owe under £3,000 and are in PAYE employment, you can file by 30 December 2025 and have HMRC collect the tax through your salary over 2026-27. It’s like an interest-free loan.

4. Get Tax Refunds Sooner

If you're owed money, early filing gets your refund processed faster. That cash could help your household budget or business capital immediately.

5. Reduce Your July Payment on Account

Filing before 31 July 2025 could reduce or eliminate your second payment on account. Perfect if income has dropped or business losses apply.

6. Prepare for Making Tax Digital (MTD)

MTD starts April 2026 for sole traders and landlords earning over £50,000. Filing early lets you see if you're affected and gives time to prepare.

7. Manage Transition Profits

2023-24 triggered a shift to fiscal-year accounting. Early filing helps manage any transition profits in 2024-25 and optimise tax reliefs over five years.

8. Prove Income for Loans or Mortgages

Early returns provide official proof of income (think SA302) needed for mortgage applications, loans, or other financial support.

9. Enable Better Tax Planning

The earlier you file, the earlier you see where you can be more tax efficient. That could mean adjusting pensions, business structure, or income strategies.

10. Keep Your Accountant Happy (and Costs Lower)

Avoid the January rush and build goodwill with your accountant. Many practices charge a premium for late submissions or may be fully booked.

Real-World Example

Imagine you overpaid your tax or have losses to claim. Early filing could put money back in your pocket within weeks. Or if you're budgeting, knowing your January 2026 bill now means no scrambling for cash later.

Key Tax Dates to Remember

• 
  
• 6 April 2024: Start of the 2024-25 tax year
• 
  
• 
  
• 31 July 2025: Second payment on account for 2023-24 due
• 
  
• 
  
• 30 December 2025: Deadline to have tax collected via PAYE
• 
  
• 
  
• 31 January 2026: Filing deadline and tax payment due for 2024-25
• 
  

Links Mentioned in This Episode

• 
  
• 🔗 Making Tax Digital
• 
  
• 
  
• 🔗 Making Tax Digital and Incorporation: Everything You Need to Know about the 2026 Changes
• 
  

Episode Timecodes

• 
  
• [00:00:00] – Why people need to file tax returns
• 
  
• 
  
• [00:00:36] – Overview of the 10 early filing benefits
• 
  
• 
  
• [00:01:00] – Benefit 1: Remove stress early
• 
  
• 
  
• [00:02:00] – Benefit 2: Know what you owe
• 
  
• 
  
• [00:03:00] – Benefit 3: Spread payments via PAYE
• 
  
• 
  
• [00:04:00] – Benefit 4: Get tax refunds sooner
• 
  
• 
  
• [00:05:00] – Benefit 5: Adjust July payments
• 
  
• 
  
• [00:05:32] – Benefit 6: Prepare for MTD
• 
  
• 
  
• [00:06:00] – Benefit 7: Transition profits and relief
• 
  
• 
  
• [00:06:26] – Benefit 8: Prove income for loans
• 
  
• 
  
• [00:07:00] – Benefit 9: Improve tax planning
• 
  
• 
  
• [00:08:00] – Benefit 10: Keep your accountant happy
• 
  
• 
  
• [00:08:47] – Key dates and wrap-up
• 
  

Host & Show Info

Host Name: Mahmood Reza

About the Host: Mahmood is an accountant, business finance coach, and founder of I Hate Numbers. With decades of experience helping businesses improve their numbers, he’s passionate about simplifying tax and giving people control over their money.

Podcast Website:https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/Listen & Subscribe to I Hate Numbers

Don’t wait until January to take control of your taxes. Share this episode with a friend, rate us on Apple Podcasts, and subscribe to get future episodes delivered straight to you. Visit our website, follow us on YouTube, and join our mailing list for more free resources to help you save money and time.