7 top tips for filing your Self Assessment tax return

Jogging your own business and being your have manager is a great route to go down.

But a single activity you might want to take care of is filling in a Self Evaluation tax return.

Self Evaluation is a method that HMRC takes advantage of to accumulate details necessary to work out how significantly money tax you really should fork out. And if you are operating a small enterprise as an alternative of having a classic wage, you have to have to get the job done out how substantially you owe.

In this write-up, we share seven prime ideas to assistance you finish your Self Evaluation tax return.

We’ve pulled together information from HMRC and Shaw Gibbs – a leading 100 accountancy and economical setting up practice with workplaces in Oxford and London.

And there’s a bonus idea from 1 of our Sage Business Experts, also.

Here’s what we protect:

1. Get your home in purchase

2. Be distinct on the costs you can claim back again

3. Really do not be afraid to inquire for enable

4. Sign-up for Self Evaluation

5. Have a obvious plan

6. ‘Doing the deed’

7. Get ahead of the video game

Reward tip: Really do not leave it to the very last minute

Final thoughts on submitting in your tax return

1. Get your house in order

Finishing a Self Assessment tax return is a great deal less complicated if you’ve stored superior data.

Use a independent business financial institution account, as perfectly as accounting software to keep track of your income and charges throughout the 12 months relatively than leaving it all to the last minute.

Maintain excellent documents (these kinds of as financial institution statements or receipts) to fill in your tax return accurately.

2. Be very clear on the bills you can declare back again

The extra respectable allowable bills you can file, with accompanying evidence, the less tax you will pay back due to the fact you can offset costs from earnings.

It’s really worth getting advice from an accountant or a tax adviser on any massive buys these types of as vehicles and vans.

3. Really do not be worried to talk to for enable

Accountants normally ‘pay for themselves’ – highlighting tax efficiencies can be worth a lot more than the cost of their services.

Great accountants will spot probable problems, reducing the risk of you owning to face an audit by HMRC, and doable penalties for receiving your tax return improper.

According to Shaw Gibbs, if you look at finding support, it is worthy of appointing an adviser early.

Most corporations full and post their Self Assessment tax returns through the exact time period (ordinarily in December and January). If you depart it late, you may well battle to uncover an accountant who can aid you.

It is also worthy of examining out free forms and enable sheets, webinars and other methods on the HMRC website.

4. Sign up for Self Evaluation

The to start with time you total a Self Evaluation tax return, you’ll want to sign-up with HMRC as either self-employed, not self-used, or as a partner or partnership. The method differs according to your status.

Make certain you depart up to 20 doing work days for HMRC to procedure your application and give your self a lot of time right before the deadline to comprehensive your return.

At the time you sign-up, you’ll be sent a Special Taxpayer Reference (UTR), which you will need when you file your return.

You can opt for irrespective of whether to file your Self Assessment tax return by write-up or on the web – the latter allows you to conserve drafts, evaluation returns and print tax calculations.

If finishing your tax return on-line, you will need to have to sign-up for on-line expert services first. HMRC will send out you an activation code. Enable up to a week for this to arrive.

You are going to require to enter the UTR, activation code and your postcode in Govt Gateway or GOV.Uk Validate.

After you are registered to use the process, you’ll require all your tax records, dividend vouchers, receipts, and other data to entire the on the internet sort.

You can save your progress at any time and return to complete the sort later.

5. Have a crystal clear approach

Keep away from submitting a tax return below stress.

The deadline for paper returns was 31 Oct 2022. On-line tax returns have to have to be completed by midnight on 31 January 2023. And tax ought to be compensated by midnight on 31 January 2023 for the earlier tax 12 months ending 5 April.

Make confident you allow for ample time to comprehensive and post your Self Evaluation tax return so you can steer clear of late filing penalties.

You are going to get a penalty of £100 if your tax return is up to a few months late. And you are going to have to pay out a lot more if it’s later than that, or if you shell out your tax invoice late. HMRC will also charge desire on late payments.

No 1 needs that.

Study extra about Self Assessment

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6. ‘Doing the deed’

Quite a few of the concerns in the Self Evaluation tax return form are identical. If it is the initial time you’re publishing a single, it might be well worth reading by way of every thing initially right before you begin to fill it in.

That way, you can see what information and facts goes in every part and comprehensive the undertaking much more promptly.

When working on the web, tax calculators will get the job done out how considerably you owe. The amount will rely on your earnings tax band. For some men and women, the tax will be deducted routinely from wages and pensions.

If you have further cash flow, this sort of as a second residence that you rent out, you are going to want to fill in an excess section.

There is also a different rate for Cash Gains Tax if you need to pay out it – if you promote shares or a next household, for example.

7. Get in advance of the activity

In accordance to Shaw Gibbs, if you need to have to mail a Self Evaluation tax return, it’s really worth distributing it as before long as probable just after 6 April in any tax year so you can strategy your finances for the yr about any tax liabilities or refunds.

Robert Shadbolt, a personal tax adviser with Shaw Gibbs, says: “There are a ton of tax allowances that go unclaimed just about every year.

“A tax adviser is aware of what these are and can assistance you to be far more tax-effective – for instance, suggesting you use the Trading Allowance.

“Accountants can advise on the greatest program of action on huge conclusions or buys, these as gifting belongings to household associates, promoting 2nd houses and generating significant pension contributions.

“Accountants can also effortlessly place blunders and misclaimed costs – objects that are not wholly and solely for the operating of a company.”

Bonus suggestion: Don’t leave it to the very last minute

Steve Johnson, a Sage Organization Skilled and the proprietor of Graphite Web Options, claims: “While there is a deadline to complete your Self Assessment tax return, there is no require to depart it right up until 31 January as that piles the strain on and can raise pressure.

“Try to get your accounts accomplished near to your calendar year-stop as that will give you the time to full your tax return. Then you can rest realizing it’s all done.

“Moreover, you can concentrate on your new year promotions instead than fret about finding your tax return in.

“Personally, from working day just one of running my own business, I made the decision to use an accountant to submit my return for me – that way, he collates all the details, asks me to verify it and then ensures it is concluded and submitted close to June or July.”

Ultimate thoughts on submitting in your tax return

By adhering to this suggestions, we hope you will obtain it a lot easier to comprehensive your Self Assessment tax return, so you can emphasis on what you do very best – functioning your company.

Editor’s note: This write-up was very first released in November 2019 and has been current for relevance.