Unsure how to file a self assessment tax return in the UK? You’re not alone. According to figures released by HMRC earlier in 2024, a whopping 1.1 million people filed their self assessment tax return late. Possibly more interesting though, was that just over 61,000 customers filed it between 4-5pm on deadline day, and approximately 33,000 left it as late as 11pm, which could lead you to think it’s a job many put off doing themselves until the latest possible time.
With the right expertise and a defined set of instructions, you can confidently take on the task at hand. From enrolling for the self-assessment to completing your final return, we will guide you through the whole procedure.
Imagine the peace of mind that comes with knowing your tax responsibilities are managed correctly. No more last-minute scrambles or uncertainty about deductions and deadlines.
Read on, as we take you through the process of how to file a self assessment tax return, maintain adherence to legal obligations, and potentially even optimise your tax situations.
What is a self-assessment tax return?
Self-assessment tax returns are a system HM Revenue and Customs (HMRC) uses to collect income tax. While tax is automatically deducted from wages and pensions, individuals with additional income sources (such as self-employment, rental income, or capital gains) must report their earnings on a Self-Assessment tax return. This allows HMRC to calculate the total tax liability and ensures individuals are paying the correct amount. It’s important to adhere to filing deadlines and accurately report income, as failure may result in penalties or interest charges.
Who needs to file a self-assessment tax return?
You must send a tax return if, in the last tax year (6 April to 5 April), you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on) or a partner in a business partnership.
Self-employed tax applies whether you worked full-time or part-time and includes people like:
- Freelancers
- Consultants
- Hairdressers, beauticians, and other service providers who work for themselves
- Sole trader construction workers like plumbers, electricians, and plasterers
If you’re a freelancer wanting to learn more about freelance taxes, fret not we have created an article to guide you.
However, if you already know about the self employed tax return and are just thinking to register for self assessment. We can help you with that.
What income is subject to self-assessment tax?
Your self-assessment tax return must include all your taxable income for the tax year. That includes:
- Income from self-employment
- Income from employment (if you earn over £100,000)
- Dividend income from shares
- Interest on savings over your allowance
- Rental income
- Capital gains
- Income from trusts, settlements and estates
- Foreign income
Ensure you have records of all your income sources so you can report them accurately. HMRC can charge penalties if your tax return isn’t incomplete or you miss something.
When is the deadline for filing a self assessment tax return?
These dates apply to the tax year ending on the previous 5 April and recur annually. It’s important to meet these deadlines to avoid potential penalties.
Deadline Date | Description |
5 October | Register for Self-Assessment if new to this tax system |
31 October | Paper tax return deadline |
30 December | Deadline for online submission if you want HMRC to automatically collect tax owed from your wages and pension |
31 January | Online tax returns deadline and first payment on account due |
31 July | Second payment on the account due |
Registering for self-assessment
Before you can file your self-assessment tax return, you must register with HMRC. This involves getting a Unique Taxpayer Reference (UTR) and setting up your Government Gateway account.
Creating a Government Gateway account
Your Government Gateway account is your online portal for managing your taxes. To set one up:
- Go to the Government Gateway to register online
- Choose whether you want to register as an individual or an organization
- Fill in your name and email address
- Create a password
- Wait for your activation code to arrive by post (this can take up to 10 days)
Obtaining your Unique Taxpayer Reference (UTR)
Your UTR is a 10-digit code that identifies you to HMRC. To get one, you need to register for self-assessment. The easiest way is to do it online, but you can also phone or post a form to HMRC.
When you register, you’ll be asked for information such as your National Insurance number, personal and business details, and the date you started self-employment.
HMRC will set up your self-assessment records and send you a UTR in the post within 10 working days (21 if you’re abroad). You’ll need this to file your tax return, so keep it safe.
Information you’ll need to register
Before you start the registration process, make sure you have:
- Your National Insurance number
- Your personal details like date of birth and address
- Details of your business, including the start date and nature of your work
- Estimates of your turnover (total sales) and costs for the tax year
Having this information in hand will make registration much quicker and easier.
Gathering the necessary information
Before you file your self-assessment tax return, make sure you have all the information you need. The more organized you are, the smoother the process will be.
1. Personal details and National Insurance Number
You’ll need your personal details, such as your name, address, date of birth, and National Insurance number. Double-check that you have the right details, as mistakes can cause delays.
2. Income from employment, self-employment, and partnerships
Gather records of all your income for the tax year. That includes payslips from any employment, invoices, bank statements if you’re self-employed, and your share of partnership profits if you’re in a business partnership.
If you’re a sole trader or in a partnership, you’ll also need details of your business expenses. Make sure you only claim allowable expenses for business purposes.
3. Investment income and capital gains
If you have savings or investments, you’ll need records of any interest or dividends you’ve received. If you’ve sold assets like shares or property, you may need to pay Capital Gains Tax on the profits. Gather details of the property income or any other sale price and any costs, like broker fees.
4. Charitable donations and tax relief
You can claim tax relief if you’ve donated to charity or invested in schemes like the Enterprise Investment Scheme. Make sure you have records of your donations or investments.
Once you have all your information ready, you can file your assessment tax return online.
How to file a self assessment tax return in the UK
Now that you’ve gathered your information, it’s time to complete your tax return. The quickest and easiest way is to do it online. Here’s how the government services website works:
Step 1: Logging into your Government Gateway account
Go to the HMRC Self Assessment login page and enter your Government Gateway user ID and password. If you’ve forgotten your details, you can request a reminder.
Once you’re in, select ‘Self Assessment’ from the available services.
Step 2: Filling out the online tax return form
The online form is divided into sections covering the different types of income. Only fill in the sections that are relevant to you—you can skip the ones that don’t apply.
The form adapts based on your answers, so you’ll only see the boxes you must complete.
Step 3: Entering your income and expenses
Work through each section, carefully entering the figures from your records. Take your time and double-check everything – it’s easy to make mistakes.
If you’re not sure about anything, you can click the question mark icons for more guidance, or check HMRC’s Self Assessment guidance.
Step 4: Claiming tax reliefs and allowances
As you fill in the form, claim all the tax reliefs and allowances you’re entitled to. These can include things like:
- Personal Allowance (the amount you can earn tax-free)
- Trading Allowance (for self-employed income)
- Property Allowance (for rental income)
- Mileage claims and other business expenses
- Charitable donations
The form will automatically calculate your tax bill based on your provided information.
Step 5: Checking and submitting your tax return
Before you submit, go back through your return and check that everything is correct. Make sure you’ve:
- Entered all your income
- Included all relevant expenses and allowances
- Double-checked all the figures
When you’re happy, click ‘Submit’ to send your return to HMRC. You’ll see a confirmation screen with a reference number – make a note of this in case you need to follow up on anything later.
And that’s it—congratulations, you’ve filed your self-assessment tax return. Now, all that’s left to do is pay any tax you owe by the deadline.
Key Takeaway:
Filing a self-assessment tax return? Make sure you’re eligible, gather all your financial info, and register with HMRC to get started. Do it online for ease and don’t miss the 31 January deadline to avoid penalties. Keep records tidy for smooth sailing.
Calculating Your Tax Liability
Calculating your tax liability is one of the most important steps in filing your self-assessment tax return. This is the amount of tax you owe based on your taxable income for the year.
Understanding tax bands and rates
Income tax calculation in the UK using a progressive tax system. This means that as your income increases, so does the rate of tax you pay. For the 2023/24 tax year, the tax bands and rates are as follows:
- Personal Allowance (up to £12,570): 0%
- Basic rate (£12,571 to £50,270): 20%
- Higher rate (£50,271 to £125,140): 40%
- Additional rate (over £125,140): 45%
It’s important to understand which tax band your income falls into, as this will determine the rate of tax you pay on each portion of your income.
You might want to read our article on 40% tax bracket.
Accounting for tax credits, reliefs, and allowances
When calculating your tax liability, don’t forget to account for any tax reliefs or allowances you’re entitled to. These can significantly reduce the amount of tax you owe. Some common tax reliefs include:
- Personal Allowance (£12,570 for 2023/24)
- Marriage Allowance
- Blind Person’s Allowance
- Tax relief on pension contributions
- Charitable donations
Make sure to claim all the tax reliefs and allowances you’re eligible for, as they can make a big difference to your final tax bill.
Calculating your total tax liability
To calculate your total tax liability, you’ll need to:
- Add up all your taxable income from various sources (employment, self-employment, property, investments, etc.)
- Subtract any tax-deductible expenses or allowances
- Apply the appropriate tax rates to each portion of your income
- Add up the tax owed on each portion to get your total tax liability
- Subtract any tax already paid (e.g., through PAYE) to determine the amount of tax you still owe or are owed as a refund
If you’re unsure about calculating your tax liability, it’s always best to seek advice from a qualified accountant or tax professional.
Student loan repayments
If you have a student loan, your repayments will be calculated based on your income and deducted automatically from your salary by your employer. The repayment thresholds for the 2023/24 tax year are:
- Plan 1: £20,195
- Plan 2: £27,295
- Postgraduate Loan: £21,000
To calculate any repayments correctly, you’ll need to include information about your student loan on your self-assessment tax pay.
Request an instant quote or book a call with our team today. We’ll give you an instant breakdown of the costs, and explain the perks of dealing with a UK-based firm for your accounting needs.
Payment Methods
You have several options for paying your self-assessment tax bill. You can pay online using a debit or credit card, set up a direct debit, or send a cheque to HMRC. Awareness of the payment deadlines is crucial to avoid incurring any interest or penalties.
Seeking Professional Help
Filing a self-assessment tax return can be complex, especially if you have multiple sources of income or a complicated tax situation. In some cases, it may be beneficial to seek the help of a qualified tax professional to ensure that your tax return is accurate and that you’re claiming all the allowances and reliefs you’re entitled to.
When to consider hiring a tax professional
If you’re self-employed, have income from multiple sources, or have significant investment income, it may be worth hiring a tax professional to assist with your self-assessment UK tax. A qualified accountant or tax advisor like Sleek can provide valuable guidance on tax planning, help you navigate complex tax rules, and ensure that your tax return is filed correctly and on time.
Other situations in which you might consider seeking professional help include recently becoming self-employed, claiming tax reliefs for the first time, or receiving a large inheritance or capital gain.
Struggling with your Self-Assessment Tax Return? Sleek can help!
Our comprehensive service eliminates the stress of filing, saving you time and ensuring you pay the right amount of tax. We’ll handle all the calculations, prepare your return, and even liaise with HMRC on your behalf. Plus, you’ll get expert advice to stay on top of your finances throughout the year. Optional reference documents (for mortgages, landlords, etc.) are also available. Get started with Sleek’s Self-Assessment Tax Return Services today – prices start at just £250 plus VAT.
Key Takeaway:
Mastering your UK self-assessment tax return is all about understanding the details: know your tax bands, claim every allowance and relief you’re due, and keep meticulous records. If you make a mistake or miss a deadline, act fast to fix it. By staying organised and planning ahead, filing taxes can be straightforward.
Conclusion
There you have it – a complete walkthrough on filing your self-assessment tax return in the UK. We covered registering with HMRC, gathering your income and expense records, filling out the online form, and submitting it before the deadline.
Remember, keeping accurate records throughout the year is key to making the process as smooth as possible. And if you make a mistake or miss the deadline, don’t panic—there are steps to make things right.
Filing your tax return may never be fun, but you can confidently complete it with this knowledge. Here’s to checking that task off your list and enjoying the sweet relief of a job well done!
Contact our team of experts at Sleek for insights, tips, and business guidance on filing a self-assessment tax return in the UK.
FAQs about how to file a self assessment tax return in the UK
Can I file an income tax return myself?
Absolutely. With the right documents and a bit of patience, you can navigate through the self-assessment process solo.
What are the steps for self-assessment of tax?
Gather your financial records, register for HMRC online services, fill out your return accurately, and submit it before the deadline.
How to lodge a tax return for the first time?
First, register with HMRC. Then, collect all necessary paperwork about your income and expenses to complete your form.
450,000
businesses worldwide.
from 4,100+ reviews.
satisfaction rate from
16,000 surveyed clients.
