Three Tips for First-Time Self Assessment Tax Return Filers

Gather all the necessary information about your income and expenses before you start your tax return. In addition to making the filing process smoother, this also helps you make your filing accurate.

For this, you should review your bank statements to clearly understand your expenses and income. Similarly, you need to have all the key documents and information with you, which are as follows:

• National Insurance number
• Unique Taxpayer Reference (UTR) number
• P60 (if you are employed) to show your income and taxes paid through your employer
• Details of benefits you receive
• Student loan statements (if applicable)
• Tenancy agreements for rental income
• Receipts related to your work or business

Reducing your tax bill by taking advantage of allowances and tax reliefs is important. Here are the major allowances and tax reliefs which you may be eligible for:

• Capital Gains Tax - Annual Capital Gains Tax (CGT) allowances can be applied to profits from assets, with the option to offset losses.
• Dividend Tax Allowance - The first £2,000 dividend income is tax-free as of the 2023/24 Tax Year. Self-employed contractors paying themselves via dividends can also use their personal allowance of £12,570 in 2023/24.
• Self-Employed Business Expenses - Legitimate business expenses such as travel, office costs, and business premises can be deducted from taxable income. Just ensure that expenses are "wholly and exclusively" for business purposes to be eligible for deduction.
• Tax Relief on Pension Contributions - Basic-rate taxpayers usually receive automatic tax relief at 20% through a "relief at source" approach (applied when contributions are made). Higher-rate taxpayers (40%) and additional-rate taxpayers (45%) can claim the additional tax relief through their tax return. However, the type of pension (defined benefit vs. defined contribution) may affect how the tax relief is applied.

You may also be eligible for additional reliefs and allowances. It is best to check with a professional.

Start your tax return process early by setting up a Government Gateway account if you don’t already have one. Once registered, HMRC will send your 10-digit Unique Taxpayer Reference (UTR), which can take up to 10 working days in the UK or 21 days abroad. You can't set up your online account without this number, so getting started as soon as possible is best.

If you're struggling, you can call HMRC for help on 0300 200 3310. And if you're worried about paying your bill, you can apply for a Time to Pay arrangement, spreading payments over several months, though interest will apply after the 31 January deadline.

The deadline for filing paper returns is 31 October. You’ll have until 31 January to file online if you miss it. Mark these key dates in your calendar to avoid fines or interest charges.