Every year, HMRC issue communication to agents and individuals outlining the benefits of filing the tax return earlier than the 31 January deadline. May 2025’s Agent Update contains an article ‘Self-Assessment — early filing and top tips’ and ICB wants to remind members of the benefits and tips:
Benefits
- Filing ahead of the 31 January deadline does not mean any Income Tax liability is due earlier;
- In fact, if a refund is due, this refund can be paid quicker;
- Certainty about knowing what is due to HMRC is important, not least for budgeting;
- Remember that January is a busy time for HMRC’s Self-Assessment line;
- Beating the 31 January deadline does alleviate the potential for late filing penalties;
- It is easier for bookkeepers to be able to spread the administration and the associated stress, especially if something happens or is found to be missing at the last-minute;
- For the taxpayer, the relief of submission always brings peace of mind and you can bring this to your clients sooner by fling early; plus
- Getting tax returns processed does give you more time to prepare for Making Tax Digital for Income Tax (MTD ITSA)
Tips
Importantly, make sure that your client details are correct or ask them to update it in their HMRC online account. Plus:
- Make sure your client is registered for Self-Assessment – or has reactivated their account. if you are authorised to act as an agent or tax adviser for your client, ICB advises reading the ‘Agent Dedicated Line — Self Assessment or PAYE for individuals’ guidance which contains information and contact details;
- If there is no longer a liability to complete a Self-Assessment tax return, HMRC requires de-registration unless they have confirmed that there is no longer an obligation. Remember that if HMRC’s systems have an expectation to receive a tax return, they will issue late filing penalties, so de-registration is vital
- You will, obviously, need the correct income and employment information and the Agent Update advises that the quickest way to get this is via the Income Records Viewer. You will need an Agent Services Account and you client will need to authorise you via the digital handshake;
- The section ‘How to get tax returns and repayments right’ should be read in order to help speed up repayment requests;
- Make sure you consider HMRC’s ‘Marriage Allowance sequencing’ restriction. To prevent HMRC’s systems processing transfer and recipient requests in the wrong order, the person transferring the Marriage Allowance (transferor) should submit their tax return first if the person receiving the Allowance (recipient) is also in Self-Assessment. This recipient should leave 72 hours after the transferor has submitted their tax return before submitting theirs; plus
- Ensure you do not send the original tax return as an amendment. Amended returns are not processed automatically, so if the tax return is sent as an amendment but the original has not been sent, this causes delays and the potential for penalties
For Bookkeepers
The May 2025 Agent Update does contain some useful information. In addition, HMRC are running the following webinars, all of which require registration:
