Navigating the world of self-assessment tax returns can feel like venturing into a maze—especially for first-time filers. With tax return deadlines approaching and forms to fill out, it’s easy to feel overwhelmed. But fear not! This guide will not only explain the process but also arm you with essential tips to make your tax return filing experience as smooth as possible. Whether you are self-employed, a freelancer, or simply need to report additional income, we have got you covered.
 

1. Understanding Self-Assessment Basics
 

Self-assessment is the method used by HM Revenue and Customs (HMRC) to collect Income Tax. If you are self-employed or earn additional income, you must likely file a self-assessment tax return. The deadline for online submissions is 31st January. Missing the tax return deadline can lead to penalties, making it essential to know your timeline.
 

2. Gathering Necessary Documentation
 

Before you start filling out your self-assessment tax return, gather these necessary documents: income statements, invoices, bank statements, and receipts for expenses. Keeping them organised would save you time and stress as the deadline approaches. Consider creating a dedicated folder—digital or physical—to store everything. 

If you are self-employed, must-read Key Points of Filing Self-Assessment Tax Return for Self Employed
 

3. How to Register for a Self-Assessment Tax Return 
 

To register for self-assessment, start by signing up for HMRC online services. This is your first step towards successful filing. Once you register, you will receive your Unique Taxpayer Reference (UTR) Number. After setting up your account, you will receive an activation code by post to complete your Gateway account setup.

Read more at https://www.gov.uk/log-in-file-self-assessment-tax-return 
 

4. Common Mistakes to Avoid
 

First-time tax return filers often make simple yet costly mistakes. Here are a few common ones to check: 

• Incorrect Personal Information: Double-check your name, address, and National Insurance number to avoid delays.
   
• Omitting Income: Ensure you include all sources of income, as failure to do so can result in penalties.
   
• Claiming Ineligible Expenses: Familiarise yourself with what you can and cannot claim. Consulting a professional can help clarify these points.
   
• Not Keeping Records: Always keep receipts and documentation for any expenses you claim, as HMRC may ask for evidence.
   
• Rushing the Process: Take your time to fill out your return accurately. Rushing can lead to careless mistakes.
   

To avoid further complications, look at our earlier article The Benefits of Filing Self-Assessment Tax Returns Early
 

5. Deductions and Allowances
 

Did you know that many expenses can be claimed on your tax return? From travel costs to home office expenses, knowing what you can claim is key to reducing your tax bill. Keep a detailed record of all expenses and retain receipts. This not only helps in claiming deductions but also provides clarity in case of an audit. 

6. When to Seek Professional Help
 

If the self-assessment process feels daunting, it might be time to call in the professionals. Our tax return accountants ensure that your return is filed accurately and on time while also maximising your allowable deductions. At Doshi Accountants, we are here to support you every step of the way! 
 

7. FAQs of First-Time Self Assessment Tax Return Filers
 

1. What if I miss the tax return deadline? 
Missing the self-assessment deadline can result in penalties. If you realise, you are late, file your return as soon as possible to minimise fines. You may also want to contact HMRC for guidance on next steps. 

2. How do I change my personal details? 
If you need to update your address or personal information, you can do so through your HMRC online account. Make sure to do this promptly, as it can affect your tax records and correspondence. 

3. What if I have more than one source of income? 
If you have multiple income sources, you can report them all on your self-assessment return. Make sure to keep thorough records for each source to ensure accurate reporting. 

4. How can I track my tax refund?
After you submit your self-assessment, you can track your tax refund through your HMRC online account. Typically, refunds are processed within a few weeks. 

5. Can I file my tax return by paper?
While online filing is encouraged for its ease, you can still file a paper return. However, be aware that the deadline for paper returns is earlier than for online submissions.
 

Conclusion

Filing your first self-assessment tax return can be straightforward with the right preparation and knowledge. We are here to help you for a smooth tax return filing experience, call us at 020-8239-4999 or email us at dhruv@doshiaccountants.co.uk