However, it doesn't have to be complicated once you have adopted the right strategy and used the right software. First, you have to be registered with HM Revenue & Customs (HMRC), and then you have to file your self-assessment tax return.

Self-Assessment Tax Return: What It Is?

The employees in the United Kingdom have taxes remitted on their behalf using a process known as pay as you earn PAYE before they get paid through pay cheques. The HMRC doesn’t know how much tax is due by self-employed people, period. This is why, as an employer, you must let them know their taxable income.

All the people working for themselves in the UK and other people who have any other source of income in addition to employment have the legal obligation to file their self-assessment tax return annually online. 

Who will file a Self Assessment Tax Return in 2024-25? 

Below is the list of individuals who are expected to submit the self-assessment tax return 2025

• Self-employed people who are earning more than £1,000
• If you are working as a partner in a business partnership
• If your taxable income is more than £150,000
• If you have to pay capital gain tax when you sell something and then its value increases 
• If you had to pay the High-Income Child Benefit Charge 

Self-Assessment: Its Importance for Individuals and Businesses

Self-assessment applies to anyone who has business income or any other income that does not attract deductions at source. It applies to both the self-employed and business people as well as persons who earn a large proportion of their income from dividends. It is essential because the government expects you to remit the right amount of tax, and any failure will attract fines.

Are You Finding It Challenging to File Your Self-Assessment Tax Return?

Don’t worry; we have got you a checklist here:

Tips to File Your Self-Assessment Tax Return Online in 2024-25

We have a checklist that can help you to file your self-assessment tax return:

1. Collect All Your Important Documents In Advance 

Make it a point to gather the necessary documentation for self-assessment.

Income records: job, self-employment, rental income, etc

Expense receipts and invoices

P60, P45, or P11D forms (where applicable)

Bank statements and investment income data.

Pension contributions and charitable giving receipts

2. Understand the Allowable Expenses

If you get to know the permitted expenses, it can help you in tax liability.  Here are some of the most common ones:

Utility bills such as electricity bill and internet bill

Business travel expenses

Office Supplies

Uniforms

Necessary equipment's 

Or any professional services you have hired

3. Early Registration for Online Filing

However, if this is your first time filing your self-assessment tax return, you will first have to sign up with the tax authorities as a self-assessment taxpayer. You can expect to wait for your UTR number and activation details to submit your returns online, so do not waste your time.

4. Verify Tax Relief and Tax Deduction

Be sure to claim all applicable tax reliefs and deductions, such as:

Tax relief on pension contributions.

Deductions for charitable donations under the Gift Aid scheme.

Reliefs for married couples or those with dependent children, if eligible.

5. Maintain Compliance with HMRC

Be aware of the most current rules and regulations regarding HMRC, including MTD. Also, give clients the necessary further information and recommendations about changes that affect the self-assessment.

6. Use Accounting Software

One can also use the best and most efficient online programs like Xero or QuickBooks for the performance of the calculations.

7. Get Support from Expert 

If you think self-assessment is not your cup of tea, you can hire an expert like Aone Outsourcing Solutions. We can help you with filing your self-assessment tax returns without any problem.