Filling in your Self Assessment tax return doesn't have to be a stress-filled process. With the right knowledge and preparation, it can become an easy and stress-free task. Even if you're new to filing a Self Assessment, there are professionals such as accountants that can provide all the help you need.
Do I need to fill in a Self Assessment tax return?
Paying your taxes 'at source' is a great way to make sure that the correct amount of tax is taken from your salary or other income in the UK. Employed people on PAYE don't need to complete a self-assessment form unless they have earnt over £100,000, as it's taken care of already!
However, there are certain circumstances where you may need to complete a Self Assessment, such as if you are:
These situations require attention to ensure that all taxes are correctly managed and paid for. All it takes is some extra paperwork, but with a good accountant and a cloud accounting system, you can rest assured that you're paying your dues!
You may also need to fill in a self-assessment if the following applies to you:
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Your income was more than £1,000, and you're self-employed
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If you have untaxed income such as; savings, investments, tips, commission, renting out a property, or a foreign income
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Capital Gains Tax on profits from selling shares or a second home
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If you are a director of a company
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If you have a partner and their income is over £50,000, and you’re claiming Child Benefit.
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Your State Pension was your only source of income and was more than your personal allowance.
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Over £100,000 in taxable income
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You received a P800 from HMRC saying you didn’t pay enough tax last year
These are just a few examples of if you need to fill out a self-assessment tax return; we recommend speaking with an accountant about whether you need to fill in a self-assessment tax return or check on the GOV.uk website where there will be a full and accurate list where you can see if any of the requirements apply to you.
How to register for a Self Assessment tax return
If you have never registered for a self-assessment tax return before, you will need to visit the GOV.uk website, where you can register.
If it's your first time submitting a self-assessment tax return and you're looking for the best way to do that, registering for Self Assessment is a great way to get started. The process of registering is tailored depending on your employment status - whether you're self-employed, need to declare income but are not employed in any other capacity, or if you're part of an established partnership.
Once you’ve registered and received your Unique Taxpayer Reference (UTR) in the mail, it’s time to set up a Government Gateway account. Follow the instructions enclosed in the letter with your UTR, and before you know it, you’ll have an activation code sent to you in the post!
If you’ve already done your Self Assessment tax return once before, don’t forget to register with your old UTR – otherwise, you may experience some delays in getting your Gateway account ready to go.
It pays off to make sure that your account is all set up and good to go ahead of time - that way, if any issues arise on submission day, you won’t waste any time getting back up and running!
What are the Self Assessment deadlines?
Keeping track of tax years is essential for maintaining accurate record-keeping and staying on top of your finances.
As an example, this year, for the 2021-2022 tax year, it’s important to keep in mind the related deadlines -
Self Assessment was to be completed by the 5th of October 2022
If filing a paper tax return was required to submit your return by midnight on 31st October 2022
If you are filing your self-assessment tax return online or owe tax, you have a little longer and will need to submit it by midnight on 31st January 2023
Failing to meet these deadlines may result in you being charged a penalty fee and interest on late payments, don't let this be you; make sure you get yourself organised for the tax year ahead.
What information will I need to fill in a Self Assessment tax return?
Filling in your self-assessment tax return for the first time can feel overwhelming; so much information to provide and so many rules and regulations to adhere to. But, just like any new skill or task, when broken down into simple steps, it’s easy to get the hang of. As long as you have the details of your income and expenditure available, you’ll be filing those taxes in no time.
Before you start filling in your self-assessment tax return, make sure you have the following:
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Your National Insurance number
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P60 or other records showing how much income you received that you’ve already paid tax on
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Details of your untaxed income from the tax year
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Your ten-digit Unique Taxpayer Reference, also known as UTR
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Records of any expenses relating to self-employment
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Any contributions that might be eligible for tax relief
Again we highly recommend checking with an accountant or with HMRC if you are unsure.
How to fill in a Self Assessment tax return
Doing a Self Assessment tax return can be a lengthy process; however, understanding the two sections can make this easier.
SA100
The SA100 covers a lot of ground, including all of your taxed and untaxed income in various forms, as well as any pension contributions, charitable donations and benefits.
Fortunately, for all of us quickly getting through our taxes, HMRC already send the short-form tax return (SA200) to us, so we don't have to worry about having to fill that one out ourselves!
Supplementary
On top of that, if you have specific incomes from being a director, self-employment, capital gains or abroad, you'll need to fill out the supplementary page too.
If you're self-employed, have property income or have made capital gains recently, then it's time to fill in the supplementary page to declare this.
You'll need page SA103 for self-employment, SA105 for property income and SA108 for capital gains. It's important that you report any income that hasn't been taxed so far - who doesn't love an extra bit of money at the end of the month?!
Don't forget to include any allowable expenses, as these will cut down your tax bill - now that's what we all want! So don't be afraid - embrace your extra responsibilities and get filing those supplementary pages!
What if you make a mistake when filling in your self-assessment tax bill?
Don't wait until the last minute to work on your Self Assessment return! Getting a head start and taking your time to make sure everything is correct can help to reduce any problems you may encounter later.
Before submitting, take a look at your return one last time—this will give you a chance to revise and make necessary corrections.
And if you accidentally overlook something after it's already been submitted, don't worry! You have up until the filing deadline to go in and fix any mistakes.
Working on Self Assessment early leads to peace of mind; start now!
Self-assessment season doesn't have to be stressful! With a bit of planning and organisation, it can actually be quite straightforward. Just make sure you get started early, know what you can and can't claim, and don't forget to claim all the allowances and deductions you're entitled to. And if in doubt, always seek professional advice from an accountant or tax expert.