Self-assessment allows UK taxpayers to report their income, expenses, and any additional earnings outside their regular salary directly to HM Revenue and Customs (HMRC). Unlike PAYE(Pay as You Earn), where taxes are automatically deducted, self-assessment is typically for the self-employed, landlords, or those with significant savings or investment income.
This UK self-assessment tax return guide covers everything you need to know to get started.
Determine if You Need to File a Self-Assessment Tax Return
If you are self-employed, a freelancer, a landlord, or earn additional income outside your primary job, you are likely required to file a self-employed tax return UK. Common situations where you may need to submit a self-assessment include:
- Earnings above £1,000 from side gigs or self-employment.
- Income from renting out property.
- Earnings from investments and savings over certain limits.
- Foreign income, even if you do not live in the UK.
Register for Self-Assessment
The first step to filing is to register for self-assessment with HMRC. You will need to set up a
Government Gateway account and obtain your Unique Taxpayer Reference (UTR) number. Be
sure to register well in advance, as it can take up to 10 days for your UTR to arrive.
Once you have your UTR and have signed into your account, you will be able to file your tax
return online UK.
Gather the Necessary Information
Before you go through the steps on how to file self-assessment UK, gather the following
information: - Records of income from all sources.
- Receipts for any expenses you’re claiming.
- Any P60 or P45 forms if you left employment.
- Details of any pension contributions or charitable donations.
Keeping well-organized records throughout the year makes this step easier and ensures accuracy
in reporting.
Understand Allowable Expenses and Deductions
One of the best UK self-assessment tips is understanding which expenses you can claim to
reduce your taxable income. Common allowable expenses include: - Office supplies, utilities, and internet costs if you work from home.
- Travel expenses for business purposes.
- Tools and equipment necessary for work.
Be sure to track your business expenses so you can claim a self-assessment tax refund UK
accurately. Leveraging allowable expenses and deductions can significantly lower your tax bill.
Calculate Your Self-Assessment Tax
Once your income and expenses are in place, HMRC’s online system will help you calculate selfassessment tax UK based on the figures you input. If you’ve recently inherited assets, it’s
essential to consider any tax implications, as some forms of inheritance may require additional
reporting or impact your self-assessment. Consulting an inheritance tax specialist near me can
help ensure you account for these details accurately, which is especially helpful if the inheritance
involves property or other valuable assets. Errors or omissions could lead to additional tax
liabilities or penalties.
Step 6: Important Deadlines
Missing deadlines can lead to penalties, so it’s crucial to keep these dates in mind: - 31 January: Self-assessment deadline UK for online submissions.
- 31 July: If applicable, make a second payment on account.
File Your Tax Return and Pay Tax
Once you have completed your return and reviewed everything, submit it through the HMRC
portal. If you owe taxes, you can pay online via bank transfer, debit or credit card, or through
your bank. If you are entitled to a refund, HMRC will typically deposit it directly into your bank
account.
FAQs on Self-Assessment
What if I make a mistake on my return?
If you notice an error after submission, don’t panic. You can amend your return within 12
months of the submission deadline.
Can I file my return on paper?
Yes, but the deadline for paper returns is earlier (31 October). Filing tax return online UK is faster
and ensures quicker processing.
What if I can’t pay my tax bill?
Contact HMRC as soon as possible. They may be able to offer a payment plan or other
arrangements to help you settle your bill over time.
Final UK Self-Assessment Tips for First-Time Filers - Start Early: Do not wait until January. Preparing in advance helps avoid mistakes and gives
you time to get any extra help if needed. - Stay Organized: Keep track of income and expenses throughout the year to avoid
scrambling for paperwork when filing season arrives. - Consider Professional Help: If your finances are complex or you feel unsure, hiring an
accountant or tax advisor can provide peace of mind and help you maximize deductions.
Get Help for Your Self-Assessments
Filing for the first time? If you are unsure about the process, Legend Financial will be your self-assessment tax return guide. We will walk you through every step, from registration to filing your
returns. With 12+ years of experience in the industry, we bring unmatched expertise to you regardless of your tax position.
