How to complete your HMRC self assessment

Filing your HMRC self assessment for the first time can seem daunting, but it doesn’t have to be. With a little preparation and our friendly guide, you’ll breeze through the process and meet your tax obligations with ease. Follow these steps to complete your UK tax return confidently.

Every year, millions of UK residents need to submit a self assessment tax return to HMRC. Whether you’re self-employed, have additional income streams, or simply need to declare your income, knowing how to complete your self assessment is crucial. In this step-by-step guide, we’ll walk you through everything you need to know to successfully file your HMRC self assessment. Let’s get started!

Step 1: Gather necessary documents

Before you dive into your self assessment, it’s essential to gather all the necessary documents. Having everything in one place will make the process smoother and ensure you don’t miss anything important. Here’s what you’ll need:

• P60 and P45 forms: If you’ve changed jobs or been employed, these forms summarise your earnings and tax paid.

• P11D or P9D: Details of any benefits or expenses.

• Records of self-employment income and expenses: Keep track of your invoices, receipts, and expenses.

• Bank and building society statements: These show your interest and income.

• Dividend vouchers: If you own shares, you’ll need these to report dividends.

• Pension contributions: Details of any contributions made to your pension.

• Rental income: Records of any income from property rentals.

• Other income sources: Any other income, such as savings interest, investments, or foreign income.

Step 2: Register for Self Assessment

If you’ve never filed a self assessment before, you’ll need to register with HMRC. Here’s how:

1. Go to the HMRC website and navigate to the self assessment registration page.

2. Fill in your personal details and submit the form. You’ll need your National Insurance number and details of your income.

3. Wait for your Unique Taxpayer Reference (UTR): HMRC will send you a UTR by post within 10 working days (21 days if you’re abroad).

4. Set up your online account: Once you have your UTR, you can set up your online account and get ready to file your return.

Step 3: Log In to Your HMRC Account

With your UTR and online account set up, it’s time to log in and get started on your self assessment:

1. Visit the HMRC website and click on the ‘Sign in’ button.

2. Enter your Government Gateway user ID and password.

3. Access your self assessment: Once logged in, select ‘Self Assessment’ from your account dashboard.

Step 4: Complete Your Tax Return

Now, you’re ready to fill out your tax return:

1. Start with your personal information: Confirm or update your personal details.

2. Enter your income details: This includes employment income, self-employment earnings, interest, dividends, and any other sources of income.

3. Claim any expenses and reliefs: Deductible expenses like travel, office supplies, and professional services should be listed here.

4. Review your tax calculation: HMRC’s system will automatically calculate your tax based on the information provided.

Step 5: Review and Submit

Before submitting, make sure everything is correct:

• Double-check all entries: Ensure all income and expenses are accurately reported.

• Look for common errors: Check for typos, incorrect figures, and any missed sections.

• Submit your return: Once you’re confident everything is correct, submit your self assessment.

• Save a copy for your records: Download and save a copy of your submitted return and the confirmation page.

Common Mistakes to Avoid

Even with the best intentions, mistakes can happen. Here are some common pitfalls to watch out for:

• Missing the deadline: Ensure you file by January 31st to avoid penalties.

• Incorrect figures: Double-check all your numbers to avoid errors.

• Forgetting to claim expenses: Make sure you claim all allowable expenses to reduce your tax bill.

• Not declaring all income: All income, no matter how small, must be declared.

Completing your HMRC self assessment doesn’t have to be stressful. By following these steps and avoiding common mistakes, you’ll be well on your way to filing your tax return accurately and on time. Remember, the key is to be organised and thorough.

If you find the self assessment process confusing or have multiple income streams and declarations, we’re here to help. Reach out to us today or complete our questionnaire to see how we can assist you in making the process easier and ensuring you get it right the first time. Don’t let tax worries hold you back – let us help you navigate the HMRC self assessment with confidence.

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