Accountant gives six crucial checks taxpayers should make before filing their self-assessment return

"Filing your Self-Assessment tax return each year is usually considered one of the less enjoyable tasks, particularly for those who are self-employed or need to report additional income. However, it is not only important to file on time to avoid penalties - it is equally essential to ensure accuracy. Many people do not realise that HMRC can issue fines for careless mistakes, alongside interest on unpaid tax, even if errors are accidental. Leaving your return to the last minute also slightly increases the risk of errors and delays."

"If you're filing online or using the HMRC app for the first time, you will need a 12-digit Government Gateway ID to access your personal tax account, submit your return, and view your records. You will need this alongside your UTR number, and you will also need to verify your email address and confirm your identity. Many people underestimate this step of the process, particularly first-time filers, and it is a common reason returns are delayed and deadlines missed. Setting up your account early can help avoid unnecessary last-minute issues."

"Ridgefield Consulting, a chartered accountancy firm based in Oxfordshire, has shared its expertise on how best to avoid the six most common issues seen when filing a Self Assessment tax return, and provides guidance on how to ensure accuracy and avoid unnecessary stress. Declaring all forms of income correctly is crucial. This includes not only self-employment income, but also income from employment, hobbies (link to side hustle blog), rental properties, dividends, savings interest, pensions, and any foreign income you may be receiving."

Accurate and timely Self-Assessment filing prevents penalties, interest, and unnecessary stress, particularly for self-employed individuals and those with additional income sources. HMRC can issue fines for careless mistakes and charges interest on unpaid tax; around 78,000 penalties for 'failure to take reasonable care' and 9,500 penalties for deliberate errors were recorded in 2023-24. First-time online filers must obtain a 12-digit Government Gateway ID, verify email, and confirm identity, alongside using a UTR number. All income must be declared, including employment, self-employment, hobbies, rental, dividends, savings interest, pensions, and foreign income. Early preparation reduces errors and delays.

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