Starting your tax return? Read this...
Starting your tax return doesn't need to be the headache many people fear. With proper planning and the right approach, you can turn this annual task into a manageable part of your financial routine. Understanding when to begin, what information you need, and how to submit correctly saves time and prevents last-minute panic.
Getting ahead of your tax obligations puts you in control of your finances. It also helps avoid those dreaded late-filing penalties that can quickly add up. The UK's first personal tax app helps thousands complete their returns in half the time with friendly guidance. Or if you're just here to get to grips with it all, let's break it down!
What Is a Self Assessment Tax Return?
A Self Assessment tax return is how you tell HMRC about income that isn't taxed automatically through PAYE. This system applies if you're self-employed, a landlord, have significant savings interest, or earn income from abroad.
The tax year runs from 6 April to 5 April the following year. Online returns are due by 31 January after the tax year ends. Paper returns have an earlier deadline of 31 October. Most people now file online for convenience and the later submission date.
Self Assessment isn't just for the self-employed. You might need to file if you earn over £100,000, have untaxed income over £1,000, or need to claim certain tax reliefs.
How to Start Your Tax Return
The best time to start your tax return is shortly after the tax year ends in April. This gives you plenty of time to gather documents and avoid the January rush when the system often slows down. First, make sure you're registered for Self Assessment.
If you're new to the process, do this by October at the latest, as registration can take several weeks. Log into your HMRC account with your Government Gateway ID and password. From your account homepage, select 'Complete a tax return' for the relevant tax year. Work through each section methodically, answering the questions that apply to your situation.
You can save your progress and return later if needed. The system will guide you through different sections based on your circumstances. These range from employment income to self-employment, property and investments.
I once left my first tax return until mid-January, naively thinking it would take just an hour or two. Three stressful days and several calls to HMRC later, I vowed never to leave it late again!
Documents You'll Need
Before sitting down to start your return, gather all relevant paperwork in one place. This preparation makes the process much smoother and reduces stress. For employment income, you'll need your P60 (or P45 if you left a job).
These documents show your earnings and tax paid for the year. Self-employed? Have your business income and expense records ready. This includes receipts, bank statements and invoices from the tax year. Don't forget statements showing bank interest, investment dividends, or pension contributions.
These might qualify for tax relief or need to be declared. If you rent out property, collect details of rental income, mortgage interest, and allowable expenses. Things like repairs or agent fees can be deducted.
Common Mistakes to Avoid
Missing the registration deadline is a frequent error for first-time filers. If you've never filed before, start the registration process months ahead of the January deadline. Forgetting income sources is another pitfall to watch for.
HMRC receives information from banks, employers and pension providers, so they often know if something's missing. Rushing through the process leads to errors and potential enquiries. Set aside proper time to complete your return thoroughly rather than hurrying at the last minute.
Not claiming allowable expenses means paying more tax than necessary. Take time to understand what business costs you can legitimately deduct from your taxable income.
Failing to keep records makes completing your return much harder. Develop a system for tracking income and expenses throughout the year for easier filing.
Final Thoughts
Starting your tax return early puts you in control of the process. It gives you time to seek help if needed and avoids the stress of last-minute filing. Remember that completing a tax return gets easier with practice.
Each year, you'll become more familiar with the process and what information you need. HMRC's online system saves your progress as you go. This means you can tackle your return in manageable chunks rather than all at once.
Pie tax: Simplifying Tax Returns
Starting your tax return becomes remarkably easier with the right support in your corner. Pie tax offers friendly guidance tailored to your specific situation. The UK's first personal tax app guides you through each step with clear explanations and helpful prompts.
No more deciphering complex tax jargon or confusing forms. Pie tax automatically pulls information from your bank accounts and keeps everything organised in one place. This reduces paperwork and eliminates much of the manual data entry.
When you're ready, submit directly to HMRC with confidence through our secure, approved filing system. We check for errors before submission to help ensure accuracy. Feel free to explore the Pie tax app if you'd like to see how we take the stress out of tax returns.
