Things To Consider Before Filing Your Self-Assessment Tax Return UK 2025
The deadline for filing your self-assessment tax return is approaching, and there are just a few days left to meet it.
As we have only left a few days, you might notice the lights staying on even at night, as many accountants across the country are busy filing self-assessment income tax returns on behalf of their clients. Whether you file online self-assessment tax returns or get help from accountants, timely submission is important.
Completing a self-assessment tax return may not be easy, but it can be pretty easy if one prepares adequately and knows the process involved. A basic self-assessment understanding is essential to reducing HMRC penalties, increasing the available tax reliefs, and meeting legal requirements.
Through this blog, let's understand the important things to consider before filing your self-assessment tax return UK 2025.
Checklist to Consider Before Filing Self-Assessment Tax Return UK 2025
But before filing your self-assessment tax return UK 2025, you need to consider some of the following things:
1. Understand Who Needs to File TAX:
Not everyone Needs to File Self Assessment Tax Return. Here is the list of who will be filing for self-assessment tax return in 2025:
With the Self-Assessment Tax Return deadline approaching in a few weeks, persons who are still unsure whether they need to file the tax return or not can check the following conditions, and if eligible, they must file the self-assessment:
* Self-employed individuals who make more than £1000 in gross income must file a self-assessment.
* You must file the tax return if you earn less than £1000 million but have to pay Class 2 National Insurance Contributions to collect the State Pension and earn credits for it.
* You must file a tax return if you earn over £2,500 in untaxed income. You may be eligible for
* You must pay a tax return if you have received untaxed income from any resources that exceed the limit of £2,500.
* You may need to file a tax return if you are entitled to Child Benefit payments and earn more than the £50,000 threshold that requires you to pay the High-Income Child Benefit Charges.
* You must record the income if you earned up to £10,000 in savings interest, investments, shares, or other sources.
* If you have formed a new business partnership or company, you must file taxes if it fulfills the tax liability.
2. Mark the Deadline and Avoid Last Minute Filing
Missing HMRC deadlines can result in fines and penalties. Make sure you’re aware of these critical dates:
Don't worry - you still have 2 weeks to complete your self-assessment tax return, so get started now rather than burying your head in the sand and praying for the best. If you file late, you will almost face a £100 penalty, so act quickly.
3. Know Which Expenses You Can Claim
Business-related expenses can be claimed as a deduction on your tax return. Some of the claimable expenditures include:
* Purchase products for resale and get wages.
* Rent, rates, maintenance, lights, and heating
* Interest paid on any money borrowed to pay business expenses or items.
* Lease payments for business-related vehicles or machinery.
* Capital expenditure on goods like fixtures, fittings, and computer equipment can be eliminated over eight years using capital allowances.
4. Keep Your Details Within Reach
You'll need these details and documents handy to complete your self-assessment tax return correctly.
* Your Unique Taxpayer Reference (UTR) number along with your National Insurance Number. Your UTR can be found on any letter you receive from HMRC about your * self-assessment, including the annual tax return reminders.
* Income records include invoices, P60s, and bank statements.
* Details about the expenses you intend to claim (such as office supplies or travel charges).
* Information regarding alternative sources of income (for example, savings and investments).
If you have all of these, you should have enough information to complete your self-assessment.
5. Make the Most of Your Allowances and Reliefs
Here is how you can make the most of the tax allowances and reliefs available to you:
* Personal Allowance: The tax allowances are up to £12,570.
* Marriage Allowance: If eligible, you can transfer up to £1,260 of your allowance to your spouse.
* Business Expenses: Claim expenses incurred for the specific function of conducting business only.
* Capital Gains Tax Exemptions: The annual exemption allowed in the current tax year 2024/25 is £3,000 only.
It goes without saying that by analysing your financial situation accurately, you can slash your tax bill.
What Are the Consequences and Penalties If You Miss the Deadline
People who miss the self-assessment tax return filing deadline on January 31, 2025, should be aware that they will suffer consequences later in the form of a late tax return penalty. HMRC imposed the following fines for late tax returns:
* After the self-assessment deadline has gone, taxpayers who filed tax returns must pay the £100 penalty, even if there is no tax owed or the due taxes have been paid.
* After the three-month deadline, taxpayers must pay extra fines of £10 each day, up to a maximum of £900. £10 each day, with a maximum value of £900.
* If you still haven't paid the taxes six months after the deadline, you may face an additional penalty of 5% of the taxes, or £300.
* If you file your taxes after a year, you may be required to pay an additional late return penalty of 5% of your taxes, or £300.
* Additional penalties for late payment include 5% of the unpaid tax after 30 days, 6 months, and a year. If the tax is not paid by the deadline, interest will be charged along with the penalties indicated above.
Wrapping Up: File Taxes Timely to Enjoy Tax SSeson Stressfly!
Self-assessment doesn’t have to be daunting, especially when completing your annual tax return. Knowing who must file, when the filing is due, how records and documents should be arranged, the possibilities for allowable expenses, and what pitfalls to avoid makes it easier to file and minimises costs.
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