Filing your Self-Assessment tax return correctly and on time is crucial for avoiding HMRC penalties and ensuring your finances are in order. Whether you’re a sole trader, contractor, or receive other taxable income, following best practices can save time, stress, and money.
1. Know the Deadlines
Missing deadlines is one of the most common causes of penalties. Key dates to remember:
- Register for Self-Assessment: 5 October after the end of the tax year
- Paper tax returns: 31 October
- Online tax returns: 31 January
- Pay any tax owed: 31 January (and 31 July for payments on account)
Mark these dates in your calendar to stay compliant.
2. Keep Accurate Records
Accurate record-keeping is essential for smooth filing. Maintain organised records of:
- Income and sales invoices
- Business expenses and receipts
- Bank statements
- Pension contributions and other deductions
Using digital accounting software can make record-keeping easier and more accurate.
3. Claim All Allowable Expenses
Claiming legitimate business expenses reduces your taxable profit. Examples include:
- Office supplies and equipment
- Travel and mileage for business purposes
- Professional services (accounting, legal, or consultancy fees)
- Utilities and phone bills used for business
Keep supporting documentation for every expense in case HMRC requests proof.
4. Double-Check Your Figures
Errors in income or expense reporting are a common cause of HMRC queries. Review your calculations, and ensure all figures match your records before submitting your return.
5. Seek Professional Advice
Self-Assessment can be complicated, especially if you have multiple income streams or complex deductions. A professional accountant can help:
- Ensure all income and expenses are correctly reported
- Identify tax reliefs you may have missed
- Avoid mistakes that could trigger penalties or interest
Final Thoughts
Filing your Self-Assessment correctly doesn’t have to be stressful. By staying organised, keeping accurate records, and seeking professional guidance when needed, you can avoid penalties, save money, and gain peace of mind.
Need help with your Self-Assessment?
Contact Bolton Tax Accountants for expert support with Self-Assessment tax returns UK and ensure your filing is accurate, compliant, and stress-free.