Why legal professionals should file their tax return now

Legal professionals are known for their meticulous attention to detail and forward planning. Yet when it comes to their personal tax affairs, they often find themselves rushing to meet the tax return deadline of 31 January.

It’s not uncommon for legal professionals to have complex finances, so here’s why they should consider submitting their 2024-25 tax return early, and some tips to make the process smoother.

• Develop good habits: Life gets busy so develop the habit of submitting your tax return early and get peace of mind. This will allow you to focus on court dates, client demands, and your personal life knowing it’s out of the way.
• Financial planning: When you submit your tax return early, it doesn’t mean you pay early but you will find out how much you need to pay. Knowing this well in advance of the payment deadline of 31 January 2026 means you can budget. And if you’re due a refund you’ll get it sooner. Your latest tax return also provides proof of income which is useful if you’re applying for a mortgage or loan.
• Gather your information and get going: Organise yourself by collecting your receipts, expenses, bank statements and other relevant financial information. If you’ve submitted an online tax return before, use that as a guide for completing this year’s return. Your previous tax returns can be found in your HMRC online account.
• Tax reliefs: Make sure you’re aware of all the tax reliefs and allowances you’re entitled to. This can help reduce how much tax you pay. HMRC’s guidance and YouTube video explains everything you need to know.
• Get help if you need it: Seek help from somebody you know or consider hiring an accountant or bookkeeper. If you already use tax professional for your tax return, then contact them to discuss what’s needed so you can submit it early. If you complete it yourself, there’s lots of help and support available on GOV.UK and on HMRC’s YouTube channel.
• Final checks: Before submitting your tax return, double check it and don’t forget to hit the submit button. The beauty of completing an online tax return is you can easily correct any mistakes…even after you’ve submitted it. 

First time tax return

It can be daunting completing your first tax return. If this is you, then give yourself plenty of time and start it early - this is essential if you want to avoid last-minute stress. Make good use of the help available like online guidance, YouTube videos and HMRC’s digital assistant which can help you get it right. You can also subscribe to HMRC’s Self Assessment help and support email service to get important reminders and updates.

Exiting Self Assessment

If you no longer need to complete a tax return, then you need to let HMRC know. Don’t assume HMRC knows your circumstances have changed. Whatever you do, just don’t stop submitting a tax return without telling HMRC, otherwise you could get a penalty.

You can notify HMRC that you need to leave Self Assessment when you complete your last tax return by completing the section that asks for the date that you ceased trading and use the online form on GOV.UK. And if you subscribe to HMRC’s email service don’t forget to unsubscribe otherwise you’ll keep getting emails.

Closing points

You wouldn’t advise a client to leave their preparation for a case until the last minute. Apply that same wisdom to your tax affairs. It will not only reduce your stress, but it will also ensure compliance with HMRC legislation. Go online today to file your tax return.

A record 299,419 returns filed in the first week of the new tax year - GOV.UK