How to Complete a Self-Assessment Tax Return – Top 10 Tips

How to Complete a Self-Assessment Tax Return – Top 10 Tips Hero Image

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If you’re a UK taxpayer required to submit a self-assessment tax return, you’re not alone. Many individuals, from self-employed professionals to landlords, find the process daunting. At Accounting Wise, we aim to simplify the process for you. This guide will show you how to do a self-assessment tax return correctly and efficiently.

What Is a Self-Assessment Tax Return?

A self-assessment tax return is how HMRC collects income tax from those who do not have it automatically deducted. If you’re self-employed, a landlord, or earning income from savings or dividends exceeding certain thresholds, you’ll likely need to submit one.

The deadline for online submission is 31 January following the end of the tax year (5 April). Missing this deadline can result in penalties, so preparation is key.

Top 10 Tips for Completing Your Self-Assessment Tax Return

  1. Know If You Need to File
    Before diving into the process, confirm if you need to file a tax return. Common reasons include:

    • you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
    • you were a partner in a business partnership
    • you had a total taxable income of more than £150,000
    • you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
    • you had to pay the High Income Child Benefit Charge
  2. Register with HMRC
    If it’s your first time, register for self-assessment on the HMRC website. Allow up to 10 working days for your Unique Taxpayer Reference (UTR) to arrive, as it’s essential for completing the form.
  3. Organise Your Records
    Keep records of all income, expenses, and deductions. Essential documents include:

    • Payslips and P60s
    • Invoices and receipts
    • Bank statements
    • Any correspondence with HMRC
  4. Understand Taxable Income
    Your taxable income includes earnings from employment, self-employment, rental income, savings, dividends, and foreign income. Knowing what to include prevents under-reporting.
  5. Claim Allowable Expenses
    If you’re self-employed, you can reduce your taxable income by claiming allowable business expenses. These may include office supplies, travel costs, and even a portion of your home bills if you work from home.
  6. Utilise Tax Reliefs
    Make the most of tax reliefs available to you, such as pension contributions, charity donations under Gift Aid, or certain investment schemes.
  7. Double-Check Your Details
    Ensure all personal details, such as your UTR, National Insurance number, and bank information, are correct. Mistakes can lead to delays or penalties.
  8. Use HMRC’s Online Services
    Filing online is quicker and easier. HMRC’s online portal offers step-by-step guidance, and the system automatically calculates your tax liability.
  9. Submit Early
    Don’t wait until the deadline. Submitting your tax return early gives you time to rectify errors, understand your tax bill, and plan for payments.
  10. Seek Professional Help
    If you’re unsure how to complete a self-assessment tax return, a professional accountant can save you time, stress, and money. Accounting Wise specialises in assisting individuals and businesses with accurate and timely filings.

Let us worry about HMRC for you and ensure you claim all the tax relief you’re entitled to.

 Self-Assessment Tax Returns

Let us worry about HMRC for you and ensure you claim all the tax relief you’re entitled to.

 Self-Assessment Tax Returns

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Common Mistakes to Avoid When Completing a Self-Assessment Tax Return

Even small errors on your tax return can lead to penalties or delays. Here are key mistakes to avoid:

  • Missing the Deadline: Submit by 31 January to avoid a fine.
  • Failing to Register with HMRC: Without your UTR, you can’t file. Register early.
  • Omitting Income: Report all taxable income, including self-employment, rental, and dividends.
  • Claiming Disallowed Expenses: Only claim legitimate business costs with proper evidence.
  • Forgetting Payments on Account: Plan for these instalments if your tax bill exceeds £1,000.
  • Ignoring Tax Reliefs: Don’t miss out on relief for pensions, Gift Aid, or eligible investments.
  • Submitting Incorrect Personal Details: Double-check your UTR, NI number, and contact info.
  • Overlooking Capital Gains: Declare any gains or losses from asset sales.
  • Using Estimates: Always provide accurate, documented figures.
  • Ignoring HMRC Notices: Respond promptly to avoid escalating issues.

Avoid these pitfalls to ensure a smooth tax filing process. For expert help, trust Accounting Wise to handle your tax affairs.

How Accounting Wise Can Help

At Accounting Wise, we make self-assessment stress-free. Our team of experts ensures every aspect of your tax return is accurate, compliant, and optimised for savings. Contact us today to learn how we can assist with your tax requirements.

Learning how to do a self-assessment tax return doesn’t have to be intimidating. By following these tips, you can simplify the process and avoid unnecessary stress. For tailored advice and support, trust Accounting Wise to handle your tax affairs with expertise.

Need help with Self-Assessment? Get started today with Accounting Wise today!

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