The 2022-23 tax year ended on 5 April 2023 and the new 2023-24 tax year started on 6 April 2023. Many taxpayers will be happy to leave dealing with their 2022-23 tax returns until later this year or even until January 2024.
The 31 January 2024 is not just the final date for submission of the 2022-23 Self-Assessment tax return but also an important date for payment of tax due. This is the final payment deadline for any remaining tax due for the 2022-23 tax year. In addition, the 31 January 2024 is also the due date for the first payment on account for 2023-24.
HMRC’s recent press release recommends early filing of tax returns. In most circumstances, we would agree with this recommendation. By preparing your tax return early in the tax year you have not accelerated the payment date, but you will know what your tax bill will be well before the payment deadline of 31 January 2024. You can also spread the cost of your tax bill using HMRC’s Budget Payment Plan and avoid the eleventh-hour rush.
Remember that calculating how much tax you may owe is a separate process to filing the return, and so you will also need to remember to file your return and pay any tax due by 31 January 2024. This strategy should also give you time to set aside enough money to pay any tax payable. Of course, if you are owed a repayment of tax then it is a useful strategy to file your tax return as soon as possible and thus accelerate the repayment.