Self-assessment tax returns can feel overwhelming, especially as the deadline looms closer. But don’t worry; we’re here to help you get through it calmly and efficiently. Whether new to the process or a seasoned pro, having a clear plan is always good.

With our step-by-step guide, we’ll walk you through the essentials of completing your self-assessment tax return, maximising deductions, and avoiding those pesky pitfalls.

Start early and get organised

The key to a stress-free self-assessment season is preparation. The sooner you start, the less likely you are to rush and make mistakes. September is an ideal time to begin, giving you a few months before the 31 January payment deadline.

First, gather all the necessary documents. You’ll need details of your income, including payslips, invoices and bank statements. If you’re self-employed, ensure you also have records of your business expenses. It’s also important to have your national insurance number and unique taxpayer reference (UTR) handy.

Once you’ve got everything together, organise your paperwork. Separate your income from your expenses and ensure all your figures are accurate. If you use accounting software, now’s the time to update it with any missing information.

Maximise your deductions

One of the biggest advantages of completing your self-assessment is the opportunity to claim deductions on your tax bill. However, many people overlook some of the expenses they’re entitled to deduct, which means they end up paying more tax than necessary.

To avoid this, ensure you’re claiming everything you’re eligible for. Common deductible expenses include the following.

• Home office costs: If you work from home, you can claim a portion of your household bills, such as electricity, heating and internet.
• Travel expenses: If you use your personal vehicle for business, you can claim mileage or a percentage of your car’s running costs.
• Professional fees and subscriptions: Membership fees for professional bodies and subscriptions to industry magazines can also be claimed.
• Office supplies: Don’t forget to claim for the cost of stationery, printer ink and other office supplies.

It’s worth taking the time to double-check that you’re claiming all the deductions you’re entitled to. Even small amounts can add up and make a significant difference to your final tax bill.

Watch out for common pitfalls

While self assessment isn’t rocket science, a few common mistakes can lead to penalties or an increased tax bill. Here are some to watch out for.

1. Missing the deadline: The self-assessment submission deadline is 31 October 2024 for paper filings and 31 January 2025 for online filings. If you file late, you’ll be hit with an automatic £100 penalty, even if you don’t owe any tax. The longer you delay, the higher the penalties, so submitting on time is crucial.
2. Failing to declare all income: It’s important to declare all your income, including money from side gigs, rental properties and investments. HMRC has access to much information, so you could be flagged for an audit if you leave anything out.
3. Mixing personal and business expenses: If you’re self-employed, only claim for business-related expenses. Mixing personal and business expenses is a common mistake that can result in penalties.
4. Forgetting to keep records: HMRC requires you to keep records of your income and expenses for at least five years. Make sure you store your documents safely, whether digitally or in paper form.

Consider payment options

If your tax bill is higher than expected, don’t panic. There are a few options to help you manage the cost. You can set up a budget payment plan with HMRC to spread the cost over the year. Alternatively, if you’re struggling to pay, HMRC offers a Time to Pay arrangement allowing you to pay in instalments. The key is to communicate with HMRC early rather than ignore the problem.

Stay calm and seek help if needed

It’s natural to feel a bit anxious about self-assessment, but try to stay calm. If you’re feeling overwhelmed, don’t hesitate to ask for help. Whether you seek advice from an accountant, a friend who’s been through it before or HMRC’s helpline, there’s plenty of support available.

For those who prefer a DIY approach, HMRC’s website has useful guides and FAQs that can answer most questions. Additionally, many online communities and forums can provide tips and reassurance from others in the same boat.

Final check and submission

Before you hit submit, take a moment to review your return. Double-check that all your figures are correct and that you’ve included all your income and deductions. It’s also a good idea to save a copy of your return for your records.

Once you’re confident everything is in order, submit your return through HMRC’s online portal. Once your submission is successful, you should receive a confirmation email from HMRC.

A reminder from us

Remember, you don’t have to tackle self-assessment alone. At AssureTax, we’re here to make the process as smooth and stress-free as possible.

Feel free to reach out if you need any assistance, whether it’s advice on deductions or help with the paperwork.