299k tax returns filed in week one of tax year led by dog groomer

Sara White, Editor, Business & Accountancy Daily

Nearly 300,000 people filed their tax return in the first week of the new tax year, almost 10 months ahead of the 2024-25 deadline.

This will be the last year that straightforward self assessment is available as wealthier landlords, sole traders and self employed will have to report under Making Tax Digital (MTD) for Income Tax from April 2026.

The deadline for self assessment taxpayers for tax returns for 2024-25 tax year is 31 January 2026 for online submissions, 31 October 2024 for paper returns.

Mandatory MTD for Income Tax will be rolled out to affected groups earning over £50,000 a year, drawing in landlords, sole traders and self employed. It will be compulsory for this cohort from April 2026, changing the face of the tax landscape and raising compliance costs across the board as these taxpayers will have to file quarterly digital reports with HMRC, as well as a fifth year end summary.

But HMRC was celebrating last week, when it released figures showing that record 299,419 returns filed in the first week of the new tax year.

But early filing is still the exception and not the norm, with the week one total only up by less than 10% compared to 270,916 people in 2020.

There were 57,815 early filers on the opening day, which was a Sunday, compared to 67,870 people who filed on Saturday 6 April 2024. HMRC is encouraging people to file early so they know what tax they owe sooner, plan for any payments in advance and can avoid the stress of leaving it until January. It also gives more time for people to raise queries with HMRC, a constant headache as call centres are increasingly pared back.

But for some early filing makes sense, giving peace of mind to focus on the business in hand.

Jade Milbourne, 34, runs a dog grooming salon with her business partner. They offer high-quality dog grooming and teeth cleaning services for dogs ranging from chihuahuas to German shepherds. She has been running the business for five years and believes the way to stay on top of her tax return each year is to stay organised.

Milbourne said: ‘Filing early means that I have plenty of time to pay my tax bill. I set aside money from my wage each month and pay it as soon as I can, but also have the flexibility and time to save up more money, if needed.

‘I always find the more organised you are throughout the year, the less stressful it is to complete my tax return.’