That time of the year is nearly here again. It is time to complete your Self Assessment and send your tax return packing. In this blog, we are looking at everything you need to know about Self Assessments, when the deadline is and how to fill out the form. Let’s get into it.

What Is A Self Assessment?

A Self Assessment is a tax return document that tells the HMRC about your taxable income and any gains throughout the tax year. Basically, you have to work out how much you have earned and owe in tax and national insurance payments.

Want to skip to the self-employment tax tips? Read the 7 best tips on paying taxes when you are self-employed here.

Who Needs To Complete A Self Assessment Tax Return?

From self-employed taxes to property income, you may have to fill a Self Assessment return for plenty of different reasons. Here are some of the most common ones:

  • You are self employed
  • You are a company director and have income that is not taxed under PAYE
  • You earn property income (e.g., from renting a property, garage or room)
  • You are a partner in a business
  • You have to pay a high-income child benefit charge
  • You want to claim tax relief on employment expenses (over £2,500 per year)
  • You have untaxed savings (savings of more than £1,000 a year or dividends of more than £1,000 a year)
  • You have capital gains tax liability, which hasn’t already been paid

If you are still unsure, you can use the HMRC Self Assessment tax return checker tool.

How Do You Fill In A UK Tax Return?

Knowing how to do UK taxes is a breeze when you have all of the right information.

If you haven’t filed a return before, you must register for Self Assessment (this process can take up to 10 working days). However, if you have sent a return before, you can reactivate your existing account to get started.

Before you begin the process, make sure you have your Unique Taxpayer Reference (UTR), your National Insurance number, your untaxed earning information, records of expenses, any pension or charity contributions, and your P60 or other income records that you have already paid tax on.

Once you are registered and have all of your information together, it is time to start the return. At this point, many send their details to an accountant and have them fill out the forms for them. The HMRC tax return helpsheets are a great starting point if you are going solo.

When Is The Tax Return Deadline?

The 2022/23 tax year deadline is midnight on 31st January 2024 via online submissions. The deadline for paper submissions already passed on 31st October 2023.

Late tax payments and submissions incur £100 fines. You may also face interest charges, additional penalties and court enforcement. So, if you still have your Tax Return to do, don’t miss the online filing deadline!

When To Work With An Expert?

If you are unsure about making a tax return by yourself, an accountant can take the pressure away from your Self Assessment. Filling it out by yourself online is definitely manageable, but a professional will make sure there aren’t any mistakes, and this will save you time, stress and potential future fines.

Accountants typically charge a one-off fee for self-employed or sole trader tax returns. This tends to sit around £200 to £450. However, the price might go up if your accounts are complicated.

The Takeaway: Keeping Your Personal Finances In Check

Tax returns are not fun, but they are a fact of life! Hopefully, this article has helped you find the right solution for your earnings. Bookmark this page to ensure you have personal finance tips on hand when the time comes.

Learn more about finance, credit and savings on the Cash Asap blog.