To help make sure you're set up for success we’ve put some tips together to help you nail your Self Assessment tax return.
Here's an overview of what's in the blog:
Check if you need to submit a return
Register for your Self Assessment tax return
Make sure you have all your documents for your tax return
Submit your return online
Preparing for next year’s tax return
Make sure you register for Self Assessment early
If you’ve started a new business or are earning money from a side hustle, the first thing you’ll need to do is check on HMRC’s website to see if you’re required to submit a return. If you need to register for the first time, you’ll need to set up a Government Gateway account.
Once you’ve registered, you’ll be sent your Unique Taxpayer Reference (UTR) number. HMRC says it should be with you within 10 days by post (21 if you’re abroad), so registering early is important.
Once you’ve signed up, you don’t need to register again, just make sure you remember your login details!
Collect all the documents you need
Before you start your tax return, there is some information you’ll need to have to hand. If you have all the paperwork ready ahead of time, it should make the process a lot smoother.
You’ll need:
Your ten-digit Unique Taxpayer Reference (UTR)
Your Government Gateway ID and password
The activation code sent to you in the post after you registered – you’ll need this for your first Self Assessment only
Your National Insurance number – you can find this on a P60 or payslip
Details of income from your business including any invoices you have sent and the records of any expenses you can claim
Any contributions to charity or pensions that might be eligible for tax relief
Your P60 if you’ve already paid tax through another job. Your employer might also send you a P11D if you received any benefits on top of your salary
Details of any other taxable income including bank interest (you can get interest certificates from your bank), rental income, dividends received and pension income
Submit your return online
There are two ways you can submit your Self Assessment tax return. If you file online with HMRC, you need to log in to your Government Gateway account and you will find out the tax you owe quickly when you submit your return. You have until 31 January 2023 to submit your return online.
You can also submit a paper return by post but remember that the deadline for paper returns was 31 October 2021!
Find time to focus
Finally, make sure you set aside time well ahead of the deadline without any distractions to focus and complete your return accurately. It’s less stressful and you are less likely to make mistakes if you have plenty of time.
Preparing for next year’s tax return
We also have a couple of top tips for making your return easier throughout the year.
Use a separate bank account for your business
Opening a separate business account where you can get paid by your customers and spend money on business supplies will make it much easier at the end of the year to identify the income and expenses specific to your business. Some accounts also allow you to store your receipts and invoices digitally, making it easy to find them when you complete your tax return at the end of the year.
Ask for help if you need it
To make sure you don’t pay too much tax, make sure you know what allowances you can use and what you can claim as expenses. HMRC has lots of online articles which will help you understand the rules which apply to you and your business.
If you need more support, you can also get help from an accountant. Finding a good accountant will help avoid mistakes and they may find opportunities for you to save money on your tax return. Finding someone early in the year is helpful because most businesses complete their tax return at the same time so accountants can get very busy.
The Self Assessment process might look daunting but with some preparation, organisation and a bit of help, you can nail your tax return every year!
