02/01/25
It’s that time of year again, a time full of joy and cheer across the land, no, not Christmas, it’s time to fill in your tax return!
Though if you’re doing it now, you are cutting it a bit fine. The deadline for filing your taxes online is January 31st. If you haven’t completed your tax return yet and are unsure where to start or how to proceed, don’t worry, we’ve got you covered.
Filling in a tax return can be stressful at the best of times. In this article we’ll look at everything you need to prepare as well as advice on how to efficiently navigate the tax return process.
The deadline for filing a paper tax return is October 31st so if you were thinking of doing that, think again. Luckily, there is still plenty of time to get your tax return ready to submit online though the deadline is fast approaching.
What happens if you don’t file your tax return by 31st of January?
Although the results aren’t dire, they are irritating to have to deal with.
Missing the deadline for your self-assessment tax return will accrue you some late filing penalties. These take the form of an initial fixed penalty which is then followed by daily penalties for every day your tax return remains outstanding.
As these penalties grow over time, accumulating from day to day, it’s advisable to file your return as soon as possible. Not only do you get charged each additional day, but those charges have interest added to them and there is another late payment penalty if your tax return isn’t sent in by the end of February.
The best thing to do would be to contact HMRC to explain your situation or seek out professional advice from an accountancy firm like us here at CTT Accountancy.
How to prepare your tax return
Right now, you still have time to file your tax return. In order to make the process as smooth as possible, we recommend preparing well in advance and spreading out the work over the year, rather than having to scramble to put everything together at the last minute.
Don’t stress, get help!
Information included in your self-assessment tax return can be complex with penalties for submitting incorrect information, and if you have neither the inclination nor aptitude for numbers, it’s going to feel like a slog.
Rather than stress about it and make matters worse, think about asking for help from a professional accountant. We will find any mistakes and advise you on the various tax relief schemes you may be entitled to.
Research tax allowances and reliefs
Reliefs are available for both individuals and businesses. They are worth looking into as they can significantly reduce your tax bill. The most common deductions include things like business expenses, charitable contributions, and training/educational expenses.
With any tax relief scheme different rules will apply for different situations. Just because a relief is available, doesn’t mean you will be able to take advantage of it. The best thing to do is consult an expert who can look into any tax reliefs that apply to your specific circumstances.
Use accounting software
This is a good tip for general accounting over the year. Investing in some accounting software like Xero, Sage, or Quickbooks helps to keep accurate record of invoices and expenses as they happen, leaving you with an easy audit trail come tax return time.
How to file your tax return for 2025
Once you have all the information at your disposal, it’s time to fill in your tax return. Follow these steps to efficiently carry out the task.
Register for self-assessment
If this is your first time filing a tax return, you need to register with HMRC. You can do this online and HMRC have provided simple options to select from to register your specific circumstances. If you are self-employed or a partner in a business, you will need to submit a tax return.
Set up a government gateway account
Submitting your tax online will require a Government Gateway account. By registering for self-assessment or setting up a limited company you will be issued with a Unique Taxpayer Reference (UTR) number from HMRC. Use your UTR to sign up for a Government Gateway account.
Make sure you have all the details to hand
You will need a series of personal documents and financial information to fill in your tax return. These include:
- UTR number
- National Insurance number
- Receipts of expenses if you are self-employed
- Details of all sources of income
- P60 or P45 form
- Details of taxable benefits
- Information about pension contributions
Complete online tax assessment
Log in to your Gateway account and complete your online tax return. The form has sections for you to complete and is very comprehensive. It’s advised that you take your time and ensure that all of the information you input is correct, as there are penalties for even small errors, as well as mistakenly paying too much tax!
It might be time-consuming but is ultimately worth it. Completing your tax return online allows you to leave the form partially completed for you to come back to later. Add as many details as you like, save it, and then return at a later date to finish it off.
Make tax payment
Once you have completed and submitted your form, HMRC will let you know how much tax you have to pay. You must pay this before January 31st or risk incurring financial penalties.
Do you need to file a self-assessment tax return?
There are certain criteria, that, if you meet them, will mean you will need to submit a self-assessment tax return. These won’t apply to everyone but if any of the following apply to you then you will have to follow our guide and send in your tax return to HMRC.
If you:
- Are self-employed
- Earned more than £1,000 in taxable profits
- Received more than £150,000 of taxable income
- Are a partner in a business
- Received money from renting out a property
- Received dividends income
- Received foreign income
- Sold shares or a second property
You will need to file a tax return.
If you need to file a self-assessment tax return, don’t hesitate to get in touch with us here at CTT Accountancy. With your personal information and invoice and expense records we’ll be able to advise you on the tax reliefs you may be due and also fill out your tax return and take some of the work (and stress!) off your hands.
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