With a business to run, clients to serve and day-to-day demands competing for your attention, you might not be prioritising your 2025/2026 tax return so soon in the new tax year. But if you are a sole trader or landlord with combined gross income over £30,000, this dawn of this particular tax year deserves a moment of your time.
Getting your tax return completed sooner rather than later not only gets it off your to-do list, but it will also help make the transition to MTD less stressful too.
Know your key deadlines
It helps to have the important dates clearly in mind, so nothing catches you off guard. Here’s a reminder:
- 31 October 2026 – Deadline for submitting paper tax returns for 2025/2026
- 31 January 2027 – Deadline for submitting tax return online for 2025/2026
For tax payments, remember that the first payment on account is due on 31 July 2026, followed by a balancing payment and your next payment on account on 31 January 2027. If your income has changed significantly this year, your July payment could be higher or lower than expected, which is another reason to get your return completed sooner rather than later.
Why filing early makes sense
Submitting your self-assessment early in the tax year rather than in the weeks before the January deadline has real advantages.
You will know exactly what you owe well in advance, which gives you time to budget and avoid a cashflow shock. If you have overpaid tax, an early submission means an earlier refund. And practically speaking, your records are still fresh: receipts are easier to find, figures are easier to reconcile, and the process is far less painful.
Making Tax Digital is coming for your business
If you are a sole trader or landlord earning over £30,000, Making Tax Digital for Income Tax will apply to you from 6 April 2027. That might feel like a comfortable distance away, but the preparation required means now is exactly the right time to start thinking about it.
Under MTD, you will no longer submit a single annual return. Instead, you will be required to send quarterly updates of your income and expenses to HMRC using MTD-compatible software. A final declaration will then confirm your end-of-year position. This blog gives you more details on the changes.
If you are not already using cloud accounting software, getting set up now gives you a full year to find the right platform, get comfortable with it and have clean, well-organised records in place well before the April 2027 deadline. If you’re finding it difficult to choose, we would be happy to make a recommendation.
A good time to take stock
The start of a new tax year is a natural moment to take stock and put good habits in place. Whether that means getting your bookkeeping in order, exploring software options or simply understanding what is coming, small steps taken now will make a significant difference later.
If you would like support preparing for your self-assessment or making the transition to MTD, our team would be happy to help. Call 01252 612484 or email gillian@accountingclarkes.co.uk to book a discovery call.
