Get ready for your HMRC Self Assessment with these five easy tips to make filing your tax return a breeze
Stockport: Millions of self-employed folks are gearing up to file their HMRC Self Assessment Tax Return before the January 31 deadline. It’s a busy time, and while some people even tackled their returns on Christmas Day, there are still about two million who need to get it done.
Sarah Harkness, co-founder of IN Accountancy Limited, says over 10 million people in the UK face this task each year. It can feel pretty overwhelming, leading to procrastination and that last-minute scramble. But don’t sweat it; there are ways to make it easier.
She suggests breaking it down into five simple steps. If it’s your first time, follow all five. If you’ve done it before, you can skip ahead to Step 3.
First up, you need your Unique Taxpayer Reference (UTR). This 10-digit code is essential for logging into HMRC’s Self-Assessment system. If you’re new to this, make sure to register with HMRC to get your UTR, as it can take up to 10 days.
Next, set up your digital tax account. This is where you’ll fill out and submit your return. After you have your UTR, head to HMRC’s website to create your account. Just a heads up, waiting for the activation code can take a while, so don’t leave it too late.
Then, make a list of your income and expenses. This is crucial for knowing what to include in your tax return. You’ll want to cover all your income sources, like your salary, self-employment profits, and any rental income. Don’t forget to list your expenses too, like business costs and professional subscriptions.
After that, gather all your supporting documents. While you don’t need to attach them when you submit your return, it’s smart to keep everything organized in case HMRC asks for it later.
Finally, log in, complete your return, and hit submit. Make sure to double-check everything before you send it off. And remember to save your progress as you go, since HMRC’s portal can time out.
For anyone filing for the first time, you might need to do this if you’ve earned over £1,000 or if you’ve received untaxed income. Keeping your records up to date throughout the year can save you a lot of hassle come January.
