Filing your self-assessment tax return can feel like a daunting task, but with the right information and preparation, it can be a straightforward process. Whether you’re self-employed, have multiple income streams, or need to declare additional earnings, understanding how to complete your self-assessment properly is essential to avoid penalties and ensure compliance with HMRC.
At Every Penny Accounts, we specialise in taking the stress out of tax season by offering a comprehensive self-assessment tax return service. We handle all the details so you can focus on what you do best. However, we understand that some individuals might still prefer to tackle it on their own. That’s why we’ve created this guide—to provide you with the essential information you need to decide whether to go it alone or let the professionals step in.
Who Needs to File a Self-Assessment Tax Return?
A self-assessment tax return is required for anyone whose income isn’t automatically taxed at source. Depending on your income, you may consider relying on the services of a reliable local accountant, but it’s important to know first whether or not you meet the criteria for a self-assessment tax return. You may need to file if:
- You’re self-employed, a freelancer, or a contractor.
- You earn income from property, dividends, or other sources in addition to your salaried income.
- Your income exceeds £100,000 annually, regardless of how it’s earned.
- You receive child benefits and your or your partner’s income exceeds £50,000.
- You have untaxed savings or investment income.
- You’re a company director (unless receiving no pay or benefits).
Understanding if you’re required to file is the first step. If you’re still unsure, HMRC provides helpful tools to check your filing requirements.
Key Deadlines for Filing Your Self-Assessment
Filing your self-assessment tax return on time is not only important for maintaining your tax compliance, but it can also save you from unnecessary stress and financial penalties. HMRC enforces strict deadlines, and failing to meet them can result in immediate fines, even if you don’t owe any tax. Missing these deadlines can also lead to interest charges that increase over time, and resolving such issues later can be both costly and time-consuming. To stay on top of your tax obligations, it’s important to be aware of the key dates and ensure you are prepared well in advance:
- 5th October: You must register for self-assessment by this date if you’re filing for the first time.
- 31st October: Deadline for submitting a paper tax return.
- 31st January: Deadline for submitting an online tax return and paying any tax owed for the previous tax year.
- 31st July: If required, you’ll need to make a second payment on account by this date.
These dates are not just formalities; they are milestones in managing your financial responsibilities to HMRC. Be sure to keep these deadlines in mind and give yourself plenty of time to gather all necessary information and submit your return. Penalties for missing deadlines can start from £100 and increase if the delay continues, so setting reminders or seeking professional help to meet these deadlines is highly recommended.
Steps to Filing Your Self-Assessment Tax Return
Now that you should have a clearer idea of whether or not you will be required to submit a self-assessment tax return, and are informed on the key dates – we will now guide you through the steps required to submit your self-assessment tax return.
Gather Necessary Information
Before you start filling in your tax return, gather the following:
- Income records: This includes details from employment (P60, P45), self-employment, rental income, and dividends.
- Records of business expenses and allowable deductions.
- Any documents related to tax reliefs, such as pension contributions or charity donations.
Register for Self-Assessment
If you’re filing for the first time, you’ll need to register for self-assessment. This process will give you a Unique Taxpayer Reference (UTR) number, which you’ll need to submit your return. Make sure to register by 5th October in the year following the end of the tax year you’re reporting for.
Choose How to File
You can file your return either by paper (deadline: 31st October) or online (deadline: 31st January). Filing online is often recommended as it’s faster, allows for automatic calculations, and offers an extended deadline.
Fill Out the Self-Assessment Form
The main form for most individuals is the SA100. This will include sections to report your income, expenses, and tax reliefs. There are supplementary forms for specific situations, such as self-employment (SA103) or property income (SA105). Be thorough when entering information, as mistakes can lead to delays or penalties.
Calculate Your Tax Bill
Once you’ve entered your income and deductions, the system will calculate how much tax you owe. Ensure that you account for payments on account, which are advance payments towards your next year’s tax bill.
Submit and Pay
Once your return is completed, submit it by the 31st January deadline if filing online. You can make your payment through various methods, such as bank transfer, credit/debit card, or through your HMRC account.
For assistance, contact the team at Every Penny Accounts now!
We’re here to make your life easier. If you’d rather leave your self-assessment tax return in expert hands, don’t hesitate to get in touch with our team. We also offer a range of other accounting services tailored to your needs, including bookkeeping, payroll, CIS returns, companies house filings, corporation tax returns and more. Reach out today to see how we can help you manage your finances more effectively.
