11th January 2023Less than a month to go until the Self-Assessment tax return deadline – Avoid these common mistakes

According to HMRC, nearly 5.7 million customers still need to file their self-assessment tax return for the tax year ended 5 April 2022. The deadline to complete this is 31 January 2023.

With less than a month to go, Trusha Shah, Tax Manager at accountancy firm HW Fisher, shares her advice for those who have not yet done so.

“The deadline to submit a paper tax return has now passed, which means that those who are still yet to file their self-assessment must do so online – and we recommend that they do this as soon as possible. All too often individuals leave it too late and make simple mistakes in the rush to complete on time.”

Do you need to file a tax return?

You must submit a tax return if you have self-employed earnings or have received untaxed income over £1,000.

However, it’s not just the self-employed who have to complete their self-assessment tax returns. You will also have to file if you have any untaxed income from:

• money from renting out a property, including through Airbnb
• savings, investments and dividends
• foreign income

Make sure to avoid these common mistakes

• Allow plenty of time. Gathering paperwork takes longer than you think! This includes your P60 which will confirm the total tax you have paid on your income. You will also need a record of benefits and expenses which can be found on your P11D or P9D forms. If you have left a job in the last tax year, you will also need a P45 from your previous employer.
• You can claim tax relief on pension contributions. Make sure you keep details of any pension contributions made to allow you to claim the right tax relief for them.
• Make sure you include charity gift aid payments. You will also need details of all your gift aid payments – e.g., have you sponsored a friend to run for charity? This can be included as HMRC provides some tax relief on charitable giving.
• Don’t forget to make a copy of your completed tax return and keep a copy on file. If you are employed or a pensioner, please keep all paperwork for 22 months from the end of the tax year to which it relates to. If you are self-employed or letting a property, you should keep all paperwork for 5 years and 10 months.
• Remember your personal savings allowance. Don’t forget that this can be applied to interest earned on your savings. You could receive up to £5,000 in interest on savings tax-free.

It’s important to make sure that you complete your tax return on time. If not, you’ll face a £100 fine – and this will increase if your return is more than three months late. Particularly if you’re making a payment from overseas, allow extra time as there are sometimes delays with processing. For more information on how to pay, or to set up a payment plan, visit HMRC’s website which has lots of helpful resources.

This list is by no means exhaustive; if you aren’t sure whether you need to complete a tax return, please seek professional advice from one of our team or contact HMRC directly.