What is a self assessment tax return?

A self assessment tax return is an annual requirement for self employed individuals in the UK to report their taxable income to HM Revenue and Customs (HMRC). This process ensures you accurately calculate and pay your income tax and National Insurance contributions for the tax year.

Why is it important to file your self assessment returns?

Self assessment allows you to report all income streams not covered by PAYE, such as profits from self-employment, rental income, and investment returns. Whether you’re fully self-employed or both self employed and employed, sending a self assessment ensures all your income is accurately reported and taxed
Other reasons it is required include —

• By detailing all taxable income on your return, you accurately calculate your income tax based on your total annual earnings rather than solely relying on PAYE deductions, which only cover employment income.
• Submitting your self assessment tax return by the deadline is a legal requirement for eligible individuals. Missing this deadline can result in penalties and interest charges imposed by HMRC, adding unnecessary financial strain.
• Filing your self assessment enables you to claim eligible tax reliefs and allowances, reducing your overall tax liability. These reliefs can include deductions for business expenses and pension contributions, which add up to minimise your tax burden.

See also: GOV.UK Employer PAYE Reference Number 2024 Explained

Do I need to complete a self-assessment tax return online if I’m self-employed?

Not all sole business owners need to complete a tax return. Specific considerations, such as minimum income thresholds, apply. Depending on your circumstances, you need to register for self-assessment if —

• You worked for yourself between 6 April 2023 and 5 April 2024 as a sole trader, an LLP partner, or a director of a limited company – even if you had another job.
• You earned more than £1,000 from working for yourself before taking off any expenses.
• You had to pay the High Income Child Benefit Charge.
• You’re an off-payroll worker (also sometimes called a contractor) with a student loan providing services to a client through —
  • your own limited company
  • a partnership
  • a personal service company
  • an individual
• As an off-payroll worker (often referred to as a contractor) without a student loan, servicing clients, your annual income exceeded £150,000.
• You get over £10,000 from shares, dividends, savings, and investments.
• You get £2,500 or more in commission or cash-in-hand payments.
• If you or your partner receives a child benefit and your income exceeds £50,000, you must register for self-assessment to pay the high-income child benefit tax charge.
• If you are a landlord and have earned over £2,500 net (or more than £10,000 gross) from a UK property.
• Your total taxable income was above £100,000.
• You get income from a trust, capital gains, or an entity outside the UK.

How do I register for self assessment?

The process of registering for self assessment varies depending on your situation:

• Self-Employed: If you’re self-employed, register with HMRC as soon as you start your business. This can be done online through the HMRC website. You will receive a Unique Taxpayer Reference (UTR) and instructions on how to complete your tax return.
• Not Self-Employed: If you have other sources of untaxed income, such as rental income or investment earnings, you may still need to register for self assessment. This also involves registering online with HMRC and obtaining a taxpayer reference number.
• Partner in a Limited Liability Partnership (LLP): Each partner must register for self assessment individually. This can be done online, and you must provide details of the partnership, including its UTR, when completing your tax return.

How do I register for self assessment if I am self employed?

To inform HMRC of your intention to submit a Self Assessment tax return, you must register for a Government Gateway account by the 5th of October following the end of the tax year in which you need to file a tax return.

To register, follow the steps below.

1. Determine your HMRC account status If you already have an HMRC Business Tax Account, sign in to your account and add Self Assessment to your list of services. For those without an existing business tax account or a Government Gateway user ID, visit the HMRC login page, click ‘create sign-in details,’ and follow the instructions to set up your account and obtain a Government Gateway user ID and password.
2. Complete the registration process After completing the registration, you will receive your unique taxpayer reference within 10 working days (or 21 if you live abroad). You will also receive a 12-digit activation code in a separate letter, which you will use the first time you log in to access an HMRC service.
3. Log in and file your tax returns With your UTR and the activation code, log in to your account and file your tax returns.

How do I register for self assessment if you’re not self-employed?

If you are employed but have additional streams of income not taxed under PAYE, you will need to register for self-assessment through the following process –

• Complete Form SA1 to register
• Submit the Form by either –
  • Post the completed form SA1 to HMRC.
  • Fill it in and send it online using a government gateway account.

Once you submit the form, you will receive your UTR within 10 working days (21 days if you are abroad). After receiving your number, you can log in to the Government Gateway and file your self-assessment.

Find out more: How to Register for Self Assessment Tax Return Using HMRC SA1 Form.

How do I register for self assessment if I am a partner in an LLP?

If you are a partner in a limited liability partnership (LLP), you need to follow these steps to register for self-assessment —

• Individual Registration — Each LLP partner must register for self-assessment using Form SA401.
• Partnership Registration — The nominated partner is responsible for registering the partnership with HMRC to obtain a Unique Taxpayer Reference (UTR) for the partnership and for submitting the partnership tax return.
• Filing Returns — All partners must file individual self-assessment tax returns to report their share of the partnership profits.

Completing these steps ensures that all income is reported correctly and taxed for partnership and individual partners.

As a limited company director, do I need to register for self assessment and send a tax return?

As a limited company director, you may need to register for self assessment with HMRC to accurately declare any untaxed income from bonuses or dividends. This ensures you comply with tax obligations and helps avoid potential fines from HMRC.

You must register for self assessment if:

• You receive income not taxed at source, such as bonuses or dividends.
• HMRC has sent you a ‘notice to file’ for self assessment.

If all your income is already taxed at source and you have no additional income, you may not need to register. In such a case, if you receive a ‘notice to file,’ you can apply for its withdrawal.
To register for self assessment as a company director –

1. Fill out the SA1 form, which can be done online or via mail.
2. Include your personal details, such as your name, address, and National Insurance number.
3. Specify your status as a company director with untaxed income.

Registering for self assessment is a straightforward process that ensures you stay compliant with HMRC regulations and accurately report all your income. This helps you avoid penalties and manage your finances effectively. For more detailed guidance, visit the HMRC website.

How do I calculate my self assessment tax bill based on the income and deductions reported?

To calculate your self assessment tax bill, follow these steps:

1. Add up all your taxable income sources for the tax year, including profits from self-employment, employment income, rental income, investment returns, and any other taxable income.
2. Subtract any allowable expenses and capital allowances related to your self-employment income.
3. Deduct your personal allowance for the tax year from your total taxable income.
4. Apply the appropriate income tax rates to each portion of your taxable income based on the tax bands.
5. Calculate your Class 2 and Class 4 National Insurance contributions based on your self-employment profits if you are self-employed.
6. Add your income tax liability and national insurance contributions to your self-assessment tax bill.
7. Deduct any tax already paid at source, such as through PAYE or the Construction Industry Scheme (CIS).
8. If your total tax bill exceeds £1,000 and you have not paid at least 80% through other means, you must pay on account towards next year’s bill. These are typically two instalments due on January 31st and July 31st.
9. The self assessment tax calculation will take into account any payments on account you made the previous year and deduct them from your current year’s bill. You can view your tax calculation online if you file electronically, or HMRC will send you the SA302 form if you file a paper return.

See also: Self-Employed Class 2 National Insurance Contributions Explained

What records – documents, and information must I gather before filing online a tax return?

Before you file your tax return online, gathering all the necessary records, documents, and information is crucial to ensure everything is accurate and compliant. Here’s what you’ll need:

• Personal Details
  • UTR Number: This is essential for identifying your tax records.
  • National Insurance (NI) Number: Needed for your personal identification.
  • HMRC Login Credentials: Make sure you can access your HMRC account.
• Business Records
  • Purchases and Expenses: Keep detailed records of all business-related purchases and expenses.
  • Mileage Logs: Document any business travel.
    • Home Office Expenses: Save utility bills if you use part of your home as an office.
    • Other Allowable Expenses: Maintain records to ensure you claim all permissible expenses.
  • Financial Statements
    • Profit and Loss Statement: Summarizes your business income and expenses.
    • Balance Sheet (if applicable): Provides a snapshot of your business’s financial position.
  • Additional Income records
    • Other Income Sources: Document any income outside your primary business, like rental income or foreign income. Accurate records are crucial for a complete self-assessment.
  • Tax Reliefs and Deductions
    • Charitable Donations: Keep receipts to claim tax relief.
    • Pension Contributions: Retain records of contributions.
    • Other Tax Reliefs: Gather documentation for any other tax reliefs you qualify for.

Having all these documents and information ready will make filing your tax return smoother and more accurate.

What is the UK Her Majesty Revenue and Customs – HMRC, deadline for filing self assessment returns through the website?

In the table below, find the self assessment deadlines for online filing.

Date	Event
5 October	Deadline for registering for Self Assessment if you’ve never filed a return before
31 October	Deadline for submitting a paper tax return
30 December	Deadline for telling HMRC to collect the tax you owe through your PAYE code if you owe less than £3,000
31 January	The deadline for filing online returns, paying any tax you owe, and making the first payment on the account.
31 July	Second payment on account deadline if you make advance payments towards your tax bill

See also: UK Tax Year Dates and Filing Deadlines 2024

How do you access the self-assessment form online?

You can access your self assessment through your HMRC online account by following the steps below.

1. Sign in: Go to the HMRC website at https://www.access.service.gov.uk/login/signin/creds and sign in using your Government Gateway user ID and password.
2. Create an Account (if needed): If you do not have an account, you will need your National Insurance number or postcode and two of the following documents to create one —
   • A valid UK passport.
   • A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland).
   • A payslip from the last 3 months or a P60 from your employer for the previous tax year.
   • Details of a tax credit claim if you made one.
   • Details from a previous Self Assessment tax return if you submitted one.
   • Information on your credit record (such as loans, credit cards, or mortgages).
3. Access Self-Assessment: Select the ‘Self Assessment’ option from the menu once signed in.
4. Register for Self-Assessment (if filing for the first time): If you are filing a self-assessment for the first time, you must register with HMRC for self-assessment. This can be done online, and HMRC will send you a UTR number by post.
5. Complete and Submit Your Self-Assessment: Fill out the self-assessment form with your income and expense details. You can save your progress and complete the form later if needed.
6. Once completed, submit your self-assessment online.

What is the difference between a tax return and a self assessment return?

There’s no real difference between a tax return and a self-assessment return. They both mean the same thing in practice. In the UK, if you run a business or work for yourself, you must complete and submit your “personal” tax return by January 31st every year.

“Tax return” is the form you fill out, while “Self-assessment” is the system where you calculate and report your income and tax obligations to HMRC. So, whether you call it a tax return or a self-assessment return, it’s all about reporting your income and paying the right amount of tax.

Is there an option for those who prefer to use the paper-based form?

Yes, there is an option for those who prefer paper-based filing. However, you must call HMRC on 0300 200 3610 or, for those outside the UK, +44 161 930 8331 to request a paper version of the SA100 tax return. When you call, be prepared to provide your reason for not filing online, as HMRC will need this information to offer the relevant support.

What personal details do you need to provide on the tax return form?

When completing your tax return form, you need to provide the following personal details:

• Date of Birth: Ensures you receive all age-related benefits and allowances.
• Full Name and Current Address: Your address determines the correct income tax rate based on whether you lived in Scotland, Wales, or the rest of the UK during the tax year.
• National Insurance Number: Used to track your contributions and entitlements.
• Taxpayer Reference Number: A unique identifier for your tax records.
• Income and Benefits Received: Details of all income and benefits received during the tax year.

How do you update changes in your personal circumstances before filing your tax return?

You can tell HMRC about changes in your circumstances through your personal tax account, which you can access using your government gateway user ID and password. You can use the service to report changes in –

• Address
• Employment
• Income Tax
• National Insurance
• Tax credits and Child Benefit
• Marital status or living circumstances

What types of income should you include on your tax return?

When completing your tax return, you should include the following types of income:

1. 
   

   Employment Income

   • Full-time, part-time, or casual employment earnings
   • Income as a company director
   • Income from holding an office, such as chairperson, secretary, or treasurer
   • Income from agency work.
   • Income from foreign employment if you were a resident of the UK

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2. 
   

   Self-Employment Income

   • Earnings from self-employment or subcontracting in the construction industry if the total turnover is over £1,000
   • Coronavirus Self-Employment Income Support Scheme grants

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3. 
   

   UK Property Income

   • Rental income from any UK property or land you own or lease out
   • Furnished holiday letting income from properties in the UK or European Economic Area
   • Income from letting furnished rooms in your own home

   Close
4. 
   

   Foreign Income

   • Interest and income from overseas savings if over £2,000
   • Dividends from foreign companies if over £2,000
   • Distributions and excess reported income from reporting offshore funds
   • Overseas pensions and social security benefits
   • Discretionary income from non-resident trusts
   • Gains on foreign life insurance policies
   • Income from land and property abroad if over £1,000

   Close
5. 
   

   Trusts and Estates Income

   • Income as a beneficiary of a trust or settlement
   • Income from the estate of a deceased person, if not a fixed sum or specific asset

   Close
6. 
   

   Capital Gains

   • Gains from the sale or disposal of chargeable assets worth more than £49,200
   • Gains exceeding £12,300 before losses

   Close
7. 
   

   Other Income

   • Miscellaneous income from casual earnings, commissions, or freelance income (not exempted by the trading income allowance)
   • Taxable coronavirus support payments
   • Business receipts if the business has ceased
   • Property Income Distributions from Real Estate Investment Trusts and Property Authorised Investment Funds
   • Income from personal insurance policies for sickness or disability benefits
   • Income from unauthorised unit trusts
   • Taxable annual payments
   • Profits from certificates of deposit
   • Non-cash benefits from former employment

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8. 
   

   Pensions and State Benefits

   • State Pension
   • Pensions other than State Pensions, such as from employers, personal pension plans, or stakeholder pension plans
   • Retirement annuities and taxable lump sums
   • Incapacity Benefit (if taxable) and contribution-based Employment and Support Allowance
   • Jobseeker’s Allowance
   • Other taxable state pensions and benefits, such as Bereavement Allowance, Widow’s Pension, and Carer’s Allowance

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9. 
   

   Student Loan and Postgraduate Loan Repayments

   • Deductions taken from all PAYE employments for student loans and postgraduate loans

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10. 
    

    High Income Child Benefit Charge

    • Child Benefit payments if your income was over £50,000 and you or your partner received Child Benefit

    Close
11. 
    

    Incorrectly Claimed Coronavirus Support Scheme Payments

    • Any overpayments from the Coronavirus Job Retention Scheme, Eat Out to Help Out Scheme, Self-Employment Income Support Scheme, or other HMRC coronavirus support schemes

    Close
12. 
    

    Marriage Allowance

    • If applicable, the transfer of personal allowance to your spouse or civil partner

    Close
13. 
    

    Blind Person’s Allowance

    • If you are entitled to the allowance and want to transfer the surplus to your spouse or civil partner.

    Close

Include all relevant income and provide the necessary details to ensure your tax return is accurate and complete.

How do you report income from different sources, such as employment, self-employment, or rental income?

Accurate income reporting from different sources is essential when completing your tax return. Here’s how to report various types of income:

1. 
   

   Employment Income

   • Fill in the Employment Page
     • Include income from full-time, part-time, or casual employment.
     • Include income as a company director.
     • Include income from holding an office, such as chairperson, secretary, or treasurer.
     • Include income from agency work.
     • Include income from foreign employment if you were a resident of the UK.
   • Documents needed
     • P60 (End of Year Certificate)
     • P11D (Expenses or benefits)
     • Payslips or P45 (details of leaving work)
     • P2 PAYE Coding Notice

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2. 
   

   Self-employment Income

   • Fill in the Self-Employment Pages
     • Use the short pages if your business is straightforward and your annual turnover is less than £85,000.
     • Use the total pages if your business is more complex, your annual turnover is £85,000 or more, or you need to adjust your profits.
     • Report income from self-employment or subcontracting in the construction industry if the total turnover is over £1,000.
     • Include any coronavirus Self-Employment Income Support Scheme grants received.
   • Documents Needed
     • Profit or loss account
     • Business records

   Close
3. 
   

   Rental Income (UK Property)

   • Fill in the UK Property Pages:
     • Include rental income from any UK property or land you own or lease out.
     • Include income from furnished holiday lettings in the UK or European Economic Area.
     • Include income from letting furnished rooms in your own home.
   • Documents Needed:
     • Bank statements
     • Building society passbooks
     • Rental agreements

   Close
4. 
   

   Foreign Income

   • Fill in the Foreign Pages:
     • Include interest and income from overseas savings if over £2,000.
     • Include dividends from foreign companies if over £2,000.
     • Include distributions and excess reported income from reporting offshore funds.
     • Include overseas pensions and social security benefits.
     • Include discretionary income from non-resident trusts.
     • Include gains on foreign life insurance policies.
     • Include income from land and property abroad if over £1,000.
   • Documents Needed:
     • Statements from foreign banks or financial institutions
     • Dividend vouchers from foreign companies

   Close
5. 
   

   Trusts and Estates Income

   • Fill in the Trusts etc Pages:
     • Include income as a beneficiary of a trust or settlement.
     • Include income from the estate of a deceased person if not a fixed sum or specific asset
   • Documents Needed:
     • Statements or certificates from the trust or estate

   Close
6. 
   

   Capital Gains

   • Fill in the Capital Gains Summary Pages:
     • Report gains from the sale or disposal of chargeable assets worth more than £49,200.
     • Report gains exceeding £12,300 before losses.
     • Claim any allowable capital losses or make capital gains claims or elections for the year.
   • Documents Needed:
     • Sales receipts
     • Valuation documents
     • Purchase records

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7. 
   

   Other Income

   • Include in the Main Tax Return (Box 17):
     • Miscellaneous income such as casual earnings, commissions, or freelance income (not exempted by the trading income allowance).
     • Taxable coronavirus support payments.
     • Business receipts if the business has ceased.
     • Property Income Distributions from Real Estate Investment Trusts and Property Authorised Investment Funds.
     • Income from personal insurance policies for sickness or disability benefits.
     • Income from unauthorised unit trusts.
     • Taxable annual payments.
     • Profits from certificates of deposit.
     • Non-cash benefits from former employment.

   Close
8. 
   

   Pensions and State Benefits

   • Include in the Main Tax Return:
     • State Pension (Box 8)
     • Other pensions, annuities, and taxable lump sums (Box 11)
     • Incapacity Benefit and contribution-based Employment and Support Allowance (Box 13)
     • Jobseeker’s Allowance (Box 15)
     • Other taxable state pensions and benefits (Box 16)
   • Documents Needed:
     • P60(IB), P45(IB), P60(U), or P45(U) for benefits and allowances

   Close
9. 
   

   Student Loan and Postgraduate Loan Repayments

   • Fill in Boxes 1 to 3 of the Loan Section:
     • Include the total amount of all Student Loan and Postgraduate Loan deductions taken from all PAYE employments.
   • Documents Needed:
     • P60 and payslips

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10. 
    

    High Income Child Benefit Charge

    • Include in the Main Tax Return (High Income Child Benefit Charge Section):
      • Total Child Benefit amount received if your income was over £50,000.
    • Documents Needed:
      • Child Benefit statements

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11. 
    

    Marriage Allowance

    • Include in the Main Tax Return:
      • If applicable, transfer £1,260 of your personal allowance to your spouse or civil partner.
    • Documents Needed:
      • Marriage certificate or civil partnership documentation (if claiming for the first time)

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12. 
    

    Blind Person’s Allowance

    • Include in the Main Tax Return:
      • If you are entitled to the allowance and want to transfer the surplus to your spouse or civil partner.
    • Documents Needed:
      • Certificate from an eye specialist or local authority registration

    Close

When finishing and submitting your tax return, review all entries for accuracy, sign and date the form, and submit the completed tax return by the relevant deadline. Following these guidelines and ensuring you have the necessary documents, you can accurately report your income from various sources on your tax return.

What tax reliefs, deductions, and allowances can you claim on your tax return?

When completing your tax return, you can claim various tax reliefs, deductions, and allowances to reduce your tax liability. Here are some key ones:

• Payments to registered pension schemes: Claim tax relief on personal contributions made to registered pension schemes.
• Payments to overseas pension schemes: Eligible for relief if covered under specific conditions.
• Claim tax relief on donations made to charities and Community Amateur Sports Clubs under the Gift Aid scheme. Include one-off payments made during the tax year and those treated as if made in the previous or current tax year.
• Claim if you are registered as blind or severely sight impaired or if your eyesight is such that you cannot do work for which eyesight is essential.
• Claim tax relief on expenses incurred wholly, exclusively, and necessarily in performing your duties as an employee. This includes professional fees, subscriptions, business travel, and other work-related expenses.
• Claim relief for trading losses from self-employment or partnerships. Losses can be offset against other income or carried forward to future years.
• For self-employed individuals, deduct allowable business expenses, including office, travel, clothing, staff, and things you buy to sell.
• For self-employed individuals, deduct allowable business expenses, including office, travel, clothing, staff, and things you buy to sell.
• If your combined receipts from self-employment and certain miscellaneous income are no more than £1,000, they are exempt from tax. You do not need to report them unless the receipts are from a connected party or include a Self-Employment Income Support Scheme grant.
• Transfer up to £1,260 of your personal allowance to your spouse or civil partner if their income is below the basic rate threshold, which can reduce their tax by up to £252.
• If your total property income is not more than £1,000, it is exempt from tax. You do not need to report it unless the income is from a connected party.
• The annual exempt amount for capital gains tax is £6,000. Gains below this amount are not subject to capital gains tax.
• Basic rate taxpayers can earn up to £1,000 in savings interest tax-free, while higher rate taxpayers can earn up to £500 tax-free.
• If your income is over £50,000, you may need to pay a tax charge on Child Benefit payments. You can use the Child Benefit tax calculator to work out the charge.
• Report deductions from PAYE employment for student and postgraduate loans to ensure correct calculation.

You can reduce your overall tax liability by claiming these reliefs, deductions, and allowances. Make sure to keep accurate records and receipts to support your claims.

What types of expenses are eligible for deductions?

Certain expenses are eligible for deductions when completing your tax return, reducing your overall taxable income. Here are the key categories of deductible expenses:

• Self-employed expenses, including office costs (rent, utilities and equipment).
• Travel costs include fares, accommodation, and meals while on business trips.
• Uniforms and protective clothing that are necessary for work.
• Staff costs, including wages, salaries, bonuses and pensions
• Employer national insurance contributions
• Marketing costs, such as costs for website design and online advertising
• Subscription to professional bodies and trade associations
• Financial costs, including bank charges, interest on business loans
• Costs of goods bought for resale
• The raw material used in production

By claiming eligible deductions, you can significantly reduce your taxable income. Ensure that you keep accurate records and receipts for all expenses claimed to support your deductions if required by HMRC.

Are there any online tools available to assist with tax calculations?

Use our self-employed and employed tax calculator to estimate your tax bill.

What are your options for paying any tax owed, and what are the deadlines?

Paying your tax bill on time is crucial to avoid penalties and interest charges. Understanding your payment options and the associated deadlines can help you meet your obligations promptly.

Here are the available methods for paying your tax and their respective processing times:

1. Same or Next day

   You can make payments through the following methods, which are processed on the same day or the next:

   • Online Bank Account: Pay directly through your online banking portal.

   • Online or Telephone Banking (Faster Payments): Use your bank’s online or telephone banking service for faster payments.

   • CHAPS: Make a same-day payment using the Clearing House Automated Payment System.

   • Debit or Corporate Credit Card Online: Pay via HMRC’s online payment service using your debit or corporate credit card.

   • At Your Bank or Building Society: You can pay in person at your bank or building society. Note that you will need a paying-in slip from HMRC to do so.

2. 3 Working Days

   These payment methods typically take up to three working days to process:

   • Bacs: Make a payment using the Bankers’ Automated Clearing Services.

   • Direct Debit: If you have previously set up a Direct Debit with HMRC, payments can be processed within three working days.

   • Cheque Through the Post: Send a cheque directly to HMRC by post.

3. 5 Working Days

   Payments for new Direct Debits that have not been set up with HMRC can take up to five working days to process.

   By selecting the appropriate payment method and being aware of the processing times, you can ensure your tax payments are made on time to avoid unnecessary charges.

How do I download and fill out form SA100 and submit returns by post?

To submit your tax return by post using form SA100, you need to request the form directly from HMRC by calling 0300 200 3610 (from within the UK) or +44 161 930 8331 (from outside the UK).

You must explain why you cannot file online so that HMRC can offer the necessary support and assistance. Once requested, HMRC will send the form SA100 to your address.

Carefully complete the form, providing all required information about your income, expenses, and other relevant financial details, using the guidance notes provided by HMRC to ensure accuracy. Double-check all entries, sign and date the form, and send the completed form SA100 to the address specified by HMRC, ensuring it is sent well before the deadline to account for postal delays.

What are the penalties for late payment of self assessment taxes?

You will incur penalties and interest charges if you need to send a tax return and miss the deadline for submitting it or paying your tax bill. The penalties for late payment of self-assessment taxes are as follows:

• Initial Penalty: If your tax return is up to three months late, you will receive a penalty of £100.
• Additional Penalties: If your tax return is more than 3 months late, further penalties of £10 per day (up to a maximum of £900) can be imposed.
• Six-Month Late Penalty: If your tax return is 6 months late, you will incur an additional penalty of 5% of the tax due or £300, whichever is greater.
• Twelve-Month Late Penalty: If your tax return is 12 months late, you will face another penalty of 5% of the tax due or £300, whichever is greater.

In addition to these penalties, interest will be charged on late payments from the due date until the payment is made in full. To understand the potential charges you might face, you use the HMRC tool to estimate your penalty for self-assessment tax returns that are more than three months late and any late fees.

How do you review your completed tax return for accuracy?

Before you submit your tax return, quickly run through it and review if the information you’ve provided is accurate and up to date by —

• Confirming that your personal information, such as name, UTR, and NI number, is correct.
• Ensuring that your figures are accurate and entered in the right boxes.
• Cross-referencing income amounts with P60s, P45s, bank statements, and other income documentation.
• Review the figures provided for all sources of income (employment, self-employment, dividends, interest, rental income, etc.).
• Ensuring you have included all the eligible deductions.
• Review your tax calculations and ensure they are accurate. Then, check to see if the tax bill provided seems reasonable.
• Remember that the online system for returns has built-in checks and will make the calculations for you. However, if you are submitting paper returns, you have to be more careful.

Leverage GOV.UK HMRC toolkits to help you avoid errors in your tax return. Although these toolkits are designed for professionals, they are available to everyone and provide valuable guidance for accurately completing your tax return. https://www.gov.uk/government/collections/tax-agents-toolkits.

What are the consequences of submitting incorrect information?

HMRC can penalise you if you submit incorrect information on your tax return. If the mistake happened because you didn’t take enough care (lack of reasonable care) to understand your tax obligations or because you misrepresented your tax liability, you could face a penalty.

You must be careful and accurate with your tax return to avoid these penalties. If you’re unsure, seeking professional advice is always a good idea.

Where can you find assistance if you need help filling in your tax return?

Plenty of options exist if you’re looking for some help with your tax return. Here’s a quick rundown of what’s available:

• Professional Tax Services: Companies like Tax Back specialise in helping with tax returns. They can make the whole process a lot easier.
• Accountancy Firms: Services like the Accountancy Partnership, Wizz Accounting and UK Tax Advise Accountancy offer comprehensive accountancy and tax planning services, including help with tax returns.
• HMRC Resources: HMRC (Her Majesty’s Revenue and Customs) provides extensive guidance and resources on its website to help you complete your tax returns.
• Tax Calculators and Estimators: Your Company Formations income tax calculators can help you estimate your tax liability
• Non-profit support organisation: The Low Income Tax Reform Group and Tax Aid UK provide guidance and tax support for complex cases.

When choosing assistance, consider how complex your tax situation is, your budget, and whether you prefer in-person or online help. If your tax affairs are relatively simple, online resources and calculators might be all you need. However, professional tax services or accountants might be the way for more complex situations.

What resources are available for guidance and support?

• File your Self Assessment tax return online
• Self Assessment: forms ordering
• File your tax return early
• How to fill in your tax return (2022) Updated 2024
• Tell HMRC when you change your address
• Tell HMRC about a change to your personal details
• Expenses if you’re self-employed

4 Comments

1. 

   David Myth on Jul 31, 2024 at 5:05 pm

   Excellent article! Thanks for simplifying the steps for self assessment. I will try this for my business tax services UK.

   Reply
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     Your Company Formations on Aug 1, 2024 at 2:02 pm

     All the best David!

     Reply
2. 

   Eda B on Sep 23, 2024 at 5:56 am

   Great article! I really appreciate the clear and detailed insights you’ve provided on this topic. It’s always refreshing to read content that breaks things down so well, making it easy for readers to grasp even complex ideas. I also found the practical tips you’ve shared to be very helpful. Looking forward to more informative posts like this! Keep up the good work!

   Reply
   • 

     Your Company Formations on Oct 10, 2024 at 4:17 pm

     Thank you Eda for your encouraging comment.

     Reply

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