Common Mistakes to Avoid When Filing Your Self-Assessment Tax Return

Although filing your self-assessment tax return can seem overwhelming, doing so is necessary to avoid fines and to remain in compliance with HMRC laws. Be it a small business owner, freelancer, or someone with additional income, being aware of frequent mistakes can help you save time, money, or stress. Here are five typical errors to avoid when submitting your HMRC self-assessment tax return.


Missing the Filing Deadline

The most frequent and expensive error is failing to meet the filing deadline. The deadline for online submissions is January 31st following the end of the tax year (April 5th). The deadline is earlier—October 31st—if you're filing on paper. If you miss these deadlines, you will be fined £100 right away, regardless of whether you owe money on taxes or receive a refund. Interest and penalties may apply if there are any more delays. So put reminders in your calendar, note the deadlines, and try to file well in advance of the due date to prevent this.

Failing to Register on Time

By October 5th of the year after the tax year for which you are required to file a tax return, you must register with HMRC. For instance, you must register by October 5, 2024, if you become self-employed or launched a firm during the 2023–2024 tax year. Penalties and delays in filing your return may arise from not registering. To prevent any last-minute problems, make sure you finish the registration process as soon as possible.

Incorrect or Missing Information

Inaccurate or lacking information on your tax return may result in fines, penalties, and more investigation by HMRC. Inaccurate National Insurance numbers, income estimates, and omitted information on permissible expenses or deductions are examples of common mistakes. Before filing your return, make sure all entries are correct and complete. Make sure all the information is correct by checking your bank statements, financial records, and any other pertinent documents. To reduce the possibility of mistakes, think about utilising tax software or seeking advice from a tax expert.

Not Claiming All Allowable Expenses

If you work for yourself, you may be able to write off business-related expenses including office supplies, travel expenses, and expert services. You may end up paying more tax than necessary if you forget to claim these. Throughout the year, keep thorough records of all business expenses and make sure they are properly classified. Make sure you are claiming all the expenditures you are entitled to by reviewing HMRC's guidelines on acceptable expenses.

Ignoring Payment on Account

Taxpayers who use self-assessment may need to make advance payments towards their following year's taxes, known as account payments. Every year on January 31st and July 31st, these payments are due. Many people fail to make these payments, which can result in unforeseen tax obligations and fines. Know when you must make account payments and adjust your spending. You can request to have your account payments lowered if you anticipate a large drop in income in order to prevent overpaying.

Filing your self-assessment tax return accurately and on time is crucial for maintaining good financial health and compliance with HMRC regulations. By avoiding these common mistakes, you can ensure a smoother and more efficient tax filing process. To further lower the possibility of errors and expedite your self-assessment process, think about seeing a tax expert or utilising dependable tax software. 

 

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