Self Assessment 2025/26: Why Getting Ahead Now Makes Sense
The new tax year has started, which means it is the ideal time to get ahead with your Self Assessment tax return for the 2025/26 tax year (6 April 2025 – 5 April 2026).
Leaving things until January often leads to unnecessary stress, missed planning opportunities, and in some cases, higher tax bills. Taking action early puts you in control.
What does Self Assessment cover?
A Self Assessment tax return reports your personal income to HMRC, including:
- Self-employed (sole trader) income
- Dividends from a limited company
- Employment income (P60)
- Property income and expenses
- Savings interest
- Other sources of income
Even if some amounts feel small (such as bank interest), they still form part of your overall tax position.
Why start now?
1. Avoid the January rush
The deadline for online filing is 31 January 2027, but waiting until then creates pressure. Starting now spreads the workload and reduces errors.
2. Know your tax position early
Preparing your figures in advance gives you clarity on:
- What you owe
- When it is due
- Whether payments on account apply
This allows time to plan and set funds aside.
3. Improve accuracy
When records are reviewed closer to the year end, information is easier to find and more reliable.
4. Identify tax planning opportunities
Early preparation may highlight:
- Allowable expenses not yet claimed
- Timing of dividends
- Use of tax bands and allowances
Key dates to be aware of
- 5 April 2026 – End of the 2025/26 tax year
- 31 October 2026 – Paper return deadline
- 31 January 2027 – Online filing deadline and payment due
- 31 July 2027 – Second payment on account (if applicable)
What you should start gathering now
Getting organised early makes the process straightforward. Useful records include:
- Bank statements (covering the full tax year)
- Credit card statements
- Dividend vouchers
- P60 or employment income details
- Property income and expense records
- Details of any other income
- Sole trader records (income and expenses)
If records are clear and well organised, it can reduce both time and cost.
Making Tax Digital (MTD) – what’s changing
Self Assessment is also evolving with Making Tax Digital (MTD) for Income Tax.
Key points:
- Starts April 2026 for individuals with income over £50,000
- Expands to £30,000 from April 2027
- Requires quarterly updates + a final submission (5 filings per year)
This means moving away from a single annual return to more regular reporting.
Why preparing FY26 now helps with MTD
Getting your 2025/26 tax return completed early puts you in a strong position for MTD:
- Your records are already organised
- Systems can be adjusted before quarterly reporting begins
- There is less risk of falling behind once MTD starts
It effectively acts as a transition year.
Common mistakes to avoid
- Leaving everything until January
- Missing small income streams (e.g. savings interest)
- Poor record keeping (no receipts or summaries)
- Not planning for payments on account
- Ignoring upcoming MTD requirements
Final thought
Self Assessment does not need to be stressful. Treating it as an ongoing process rather than a once-a-year task makes it far more manageable.
Starting now means:
- Better visibility
- More control over your tax
- A smoother move into Making Tax Digital
If you want to get your 2025/26 return underway, or need guidance on what to provide, it is worth addressing it early while everything is still fresh.
Disclaimer
This blog is for general guidance only and does not constitute personalised advice. Tax rules may change and individual circumstances vary.
