Self-Assessment Tax Returns: Key Tips to File Before 31 January Deadline

With just three weeks left until the self-assessment tax return deadline on Friday, 31 January, it’s crucial to file on time to avoid penalties. HMRC uses self-assessments to collect information about earnings and expenses, helping calculate the income tax due.

As a general rule, anyone receiving untaxed income must complete a self-assessment for 2023-24. This includes self-employed individuals and those with multiple income streams such as rental income, investments, or foreign earnings.

Avoid Common Self-Assessment Mistakes

1. Declare All Income

Ensure all income is declared, including savings interest, freelance work, student loan payments, dividends, and investment income. Keep a running list throughout the year to avoid omissions.

2. Report Crypto Gains

HMRC now strictly enforces reporting of cryptocurrency gains for capital gains tax (CGT). If you’ve sold crypto for a profit, include this in your self-assessment. Undisclosed crypto gains can result in penalties.

3. Check Tax Reliefs

Don’t miss claiming tax reliefs for pension contributions, Gift Aid donations, office expenses, and professional fees. These can significantly reduce your tax liability.

4. Save for Tax Payments

Set aside 25% of your income to cover taxes and National Insurance Contributions (NICs). For tax bills over £1,000, remember to plan for payments on account for next year’s taxes.

5. Maintain Accurate Records

Keep detailed records of accounts throughout the year. Reconcile your accounts monthly or quarterly to avoid last-minute stress when filing your return.

6. File Early

Avoid the rush! Filing early gives you ample time to review your submission, reduce errors, and plan your finances. HMRC’s systems can experience delays closer to the deadline.

How Khoob Accountancy Can Help

At Khoob Accountancy, we simplify self-assessment for individuals and businesses. Our expert team helps you file accurately, claim all eligible tax reliefs, and stay compliant with HMRC regulations.

Services we offer:

• Self-assessment tax return preparation and filing.
• Advice on crypto gains and investment reporting.
• Tax planning for self-employed individuals and SMEs.
• Ongoing bookkeeping and record management.

Ready to file your self-assessment? Contact us today for professional guidance!

📞 Call us: +44 (0) 208 621 7340
📧 Email us: hello@khoobaccountancy.co.uk
🌐 Visit us: https://khoobaccountancy.co.uk

Following these steps will make filing your self-assessment stress-free and efficient.