We’ve been freelance and a business partnership since the early years of the new millennium. Every year, we tell ourselves that we won’t leave it to the last minute before we submit our tax return. And, most years, we fail on that front… the deadline looms and hangs over us like a heavy, grey storm cloud over our Christmas and new year celebrations. This year, it will be different! Take our advice if you’re newly (or not so newly) self-employed.
Filing your UK tax return can feel like navigating a minefield, especially if you’re doing it online for the first time. The sheer volume of information, the potential for errors and the looming deadline can be enough to send even the most organised individual into a blind panic. But fear not! With a little planning and the right approach, the process can be significantly less stressful.
This post will guide you through the key steps to successfully file your online UK self-assessment tax return, helping you avoid common pitfalls and conquer that looming deadline.
1. Gather your information – the foundation of a smooth return
Before even logging into HMRC’s online service, gather all the necessary documents. This is the most crucial step and the one most often overlooked. You’ll need:
- Your Unique Taxpayer Reference (UTR): This is essential for accessing your online account.
- Your National Insurance number: Another crucial identifier.
- P60 (or equivalent): This summarises your earnings and tax deductions from your employer.
- P45: If you changed jobs during the tax year.
- Self-assessment tax return information: This includes details of any self-employment income, rental income, dividends, interest on savings, capital gains and expenses related to these. Keep meticulous records throughout the year to avoid last-minute scrambling.
- Bank details: For receiving any tax refunds or making payments.
2. Accessing and navigating the HMRC online portal
Once you have all your information ready, accessing the HMRC (His Majesty’s Revenue and Customs) online service is straightforward. You’ll need your Government Gateway user ID and password, or you can register online if you haven’t already. The interface is designed to be user-friendly, guiding you through each section step-by-step.
3. Completing the form – accuracy is key
Take your time completing the form; accuracy is paramount. Double-check every entry, paying particular attention to the numbers. The good thing about filling in the form online is that it does much of the workings out for you automatically. HMRC provides clear instructions and helpful guidance for each section. If you’re unsure about anything, refer to the HMRC website’s comprehensive help pages or seek professional advice.
4. Understanding your expenses – claim what you’re entitled to
For the self-employed, claiming allowable expenses is crucial to reducing your tax bill. Keep detailed records of all business-related expenses, ensuring you understand what does, and doesn’t, qualify. Commonly claimed expenses include office costs, travel (currently, you can claim 45p per mile for business-related motor vehicle journeys) and professional fees. Incorrectly claiming expenses can lead to penalties, so ensure you understand the rules.
5. Checking and submitting your return – the final hurdle
Before submitting, thoroughly review your entire return. We like to sleep on it for a couple of days, in case we’ve forgotten something glaringly obvious. Use the HMRC’s online checking tools to identify any potential errors. Once you’re confident everything is accurate, submit your return. You’ll receive a confirmation, and you can track its progress online.
6. Seeking professional help – when to ask for assistance
If you’re struggling with any aspect of your tax return, don’t hesitate to seek professional help. An accountant or tax advisor can provide valuable assistance, ensuring accuracy and potentially saving you money. This is particularly helpful for complex tax situations involving multiple income streams or significant investments.
7. Deadlines – don’t miss them!
Remember the online UK self-assessment tax return deadline. Missing this date can result in penalties, so plan ahead and submit your return well in advance.
Filing your UK self-assessment tax return online doesn’t have to be a daunting experience. By following these steps, staying organised and seeking help when needed, you can navigate the process efficiently and confidently. Remember, proactive planning and attention to detail are your best allies in conquering your tax return.
Frequently asked questions (FAQs)
- Q: When is the deadline for filing my tax return?
- A: The deadline is typically the 31st of January following the end of the tax year (usually the 6th of April). However, this can vary depending on your circumstances. Check the HMRC website for the exact deadline.
- Q: What if I can’t afford to pay my tax bill?
- A: Contact HMRC immediately. They offer various payment options and may be able to agree a payment plan. Ignoring the issue will only worsen the situation.
- Q: I need help completing my return. Where can I find assistance?
- A: HMRC’s website offers comprehensive guidance. You can also consult a tax advisor or accountant for professional assistance.
- Q: What happens if I file my return late?
- A: Late filing attracts penalties. The penalties increase the longer you delay. It’s crucial to file on time, even if you can’t pay the full amount immediately.
- Q: Is it safe to file my tax return online?
- A: Yes, the HMRC website uses robust security measures to protect your information.