As we dive into the new year, another deadline looms for many individuals and self-employed professionals: submitting your Self-Assessment tax return. The deadline for filing your return online and paying any tax owed for the 2023-2024 tax year is 31 January 2025. Missing this deadline can result in penalties unless you have a reasonable excuse, making it vital to prepare early and avoid the rush.
Here’s everything you need to know about Self-Assessment tax returns and how you can stay compliant while reducing stress.
What is Self-Assessment, and Who Needs It?
Self-Assessment is HMRC’s system for collecting Income Tax and Capital Gains Tax from individuals who don’t have tax automatically deducted through PAYE. This includes self-employed professionals, sole traders, and others with additional income streams.
You may need to file a Self-Assessment tax return if:
- You’re self-employed or a sole trader.
- You earned over £100,000 in the last tax year as an employee or pensioner.
- You received £10,000 or more from savings interest, dividends, or investments.
- You have untaxed income of £2,500 or more, such as rental income or commissions.
- You owe Capital Gains Tax after selling assets like property or shares.
- You have income from overseas.
If you’re unsure about your situation, the “check if you need to send a tax return” tool on GOV.UK can provide clarity.
Getting Started with Your Tax Return
The first step to completing a Self-Assessment is registration. If you’re filing for the first time, register by 5 October 2025. Once registered, HMRC will send you a Unique Taxpayer Reference (UTR), which you’ll need to access your online Self-Assessment account.
To complete your return, gather all necessary documentation, including your UTR, National Insurance number, income records, and details of any expenses or contributions eligible for tax relief. Using HMRC’s online portal makes the process straightforward and provides extra help along the way.
What Do You Need to Include?
When completing your tax return, you’ll need to report:
- All taxable income, including self-employed earnings, dividends, and rental income.
- Expenses incurred as part of your business operations.
- Pension contributions and charitable donations that may qualify for tax relief.
- Any capital gains from asset sales.
Accurate record-keeping is essential, so keep bank statements, receipts, and invoices well-organised.
What If You Owe Tax or Need Help?
The deadline to pay any tax owed is also 31 January 2025. If you can’t pay the full amount, HMRC offers a “Time to Pay” arrangement, allowing you to spread payments over an agreed period. You can set this up online if you owe less than £30,000, are within 60 days of the payment deadline, and don’t have other tax debts.
For those worried about making mistakes, HMRC provides various tools, including webinars, calculators, and video tutorials, to guide you through the process. Alternatively, you can appoint a trusted professional, such as an accountant, to handle your tax return, ensuring it’s submitted correctly and on time.
Planning Ahead
If you meet the criteria for Self-Assessment this year, chances are you’ll need to do it again next year. Keep detailed records throughout the year to simplify the process for 2024-2025. If your circumstances change and you believe you no longer need to file, inform HMRC promptly to avoid unnecessary penalties.
How The Infinity Group Can Help
At The Infinity Group, we understand that navigating Self-Assessment tax returns can be overwhelming, especially with tight deadlines and complex requirements. Our expert team is here to take the hassle out of tax season. From organising your financial records to filing your return with HMRC, we’ll ensure accuracy, compliance, and peace of mind.
Don’t let the stress of tax season weigh you down. Contact us today to learn how we can help you meet your Self-Assessment obligations with ease.