Millions of self-employed people still need to submit their HMRC Self Assessment Tax Return, ahead of the January 31 deadline.
While more than 4,400 Self Assessment customers avoided peeling the sprouts to file their tax returns online on Christmas Day, it’s estimated that around two million more still have to go online and wrap up their 2023 to 2024 tax returns.
“Over 10 million people in the UK tackle their Self Assessment Tax Return each year,” says Sarah Harkness, the co-founder and managing director of IN Accountancy Limited, based in Stockport, Greater Manchester.
“Many find it overwhelming, which leads to procrastination and last-minute panic, but don’t worry.”
She says that by breaking the process into five simple steps, you can stay ahead of the game and get it done with a lot less stress.
“If it’s your first time doing a Self Assessment Tax Return, follow all five steps. For experienced filers, you can jump straight to Step 3,” she says.
1. Find Your UTR (Unique Taxpayer Reference)
Your UTR is a 10-digit code you’ll need to log in to HMRC’s Self-Assessment system. It can be found in letters from HMRC.
New to Self Assessment? You’ll need to register with HMRC to get your UTR. This can take up to 10 days, so don’t leave it too late.
Top Tip: Lost your UTR? Check online via your HMRC account or call their helpline for assistance (call as close to 8am as you possibly can to avoid being held in a very long queue).
Check out HMRC’s guidance here: How to register for Self Assessment
2. Register Your Digital Tax Account
Your digital tax account is where you’ll complete and submit your return.
How to set it up:Once you have your UTR, you can visit HMRC’s website to create an account.You’ll receive an activation code in the post.
Top Tip: Don’t delay this step—waiting for the activation code can take time (usually within 10 days, but in recent years this has become much longer)
Here’s your link to: Set up your Personal Tax Account
3. Make a List of Income and Expenses
This step is all about understanding what goes on your tax return.
Income Sources:
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Employment (salary, bonuses, and benefits)
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This should be prepopulated already by HMRC but do be careful to check they have the numbers correct.
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Self-employment profits
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Rental income (don’t forget allowable deductions like maintenance)
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Bank interest, dividends, or investments
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Capital gains from selling assets
Expenses:
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Business expenses, e.g., office supplies or travel
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Professional subscriptions
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Property-related costs for landlords
Top Tip: If you or your partner earns over £60,000 and receives child benefit, you may need to repay some through your tax return via the High Income Child Benefit Charge. Here’s a link to find out more about Child Benefit
4. Gather Supporting Documentation
Now it’s time to compile the evidence for the income and expenses listed above.While you don’t actually have to attach supporting documentation when you submit your return, you should keep everything safe in a file for the year it relates to in case HMRC does come knocking.
For Income:
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PAYE Employment: P60, P45, P11D, and pension contribution statements
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Self-Employment: Profit and loss accounts
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Rentals: Rental accounts and mortgage interest statements
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Investments: Bank statements, dividend vouchers, and share statements
For Expenses:
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Receipts, invoices, and bank statements
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Proof of mileage or other business expenses
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Evidence of allowable deductions (e.g., home office use)
5. Login, Complete and Submit
Once everything is ready, it’s time to submit your return.Log in to HMRC’s website and follow the prompts.Enter all the information from your lists and supporting documents.Double-check everything before submitting.Top Tip: Save your progress as you go—HMRC’s portal can time out.
See more of Sarah’s tips, hacks and videos here.
Recommended Reading:
Who might need to complete a tax return for the first time?
You may need to file a return if you:
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are newly self-employed and have earned gross income over £1,000
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earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
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are a new partner in a business partnership
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have received any untaxed income over £2,500
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receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000
Top Tips: It is much easier to ensure you claim all of the expenses and allowances you are entitled to if you keep all your records digitally and up to date as you go along, rather than waiting until January to find an expense for something you bought in August 18 months previously.