A Guide to Completing Your Self-Assessment Tax Return
Whether it is your first return or the first year that you have made the switch to online submissions, it is imperative that you familiarise yourself with the process. Otherwise, the confusion could lead to inaccurate or incomplete submissions. Frankly, that is the last thing you need, which is why the following guide is just for you.
Step 1: Setting up your account at HMRC
Self-assessment tax returns
are required by anyone who earn through self-employment activities, from rental property income, or from investments and savings. There are also other reasons to submit a self-assessment, such as claiming back tax relief from pension plans. Whatever the reason, your first step will be to register for an account.
This is done via the gov.uk website, although there are slightly different registration processes depending on the reason for needing to file a return. You will need to supply details about yourself, address, and National Insurance details. Once you’ve completed the process you’ll gain a confirmation with your;
● Username
● Password
● UTR (unique tax reference code)
When you sign into the gateway, you will usually have to complete a two-step verification. Once this is done, you can begin your return.
Step 2: Preparations
Before filing your tax return, you will need to ensure that you have all the relevant documents and information to complete your tax return. As well as your UTR and National Insurance details, you will need;
● All details of payments and untaxed income,
● All details of any dividends and interest on shares,
● Full records of any expenses from the tax year,
● Record of charity and pension contributions for tax relief,
● Records of any taxed income, such as a P60.
It is also worth reading the help sheets available on the gateway site and watching HMRC’s videos on the matter.
Step 3: Completing your self-assessment
Once you have clicked the button to start your new self-assessment, the Gov UK website will take you through the process through a selection of pop-up windows. Meanwhile, each section is clearly signaled on the dashboard with a tick to confirm it has been completed. If confused at any stage of the procedure, there are ‘?’ links to provide assistance.
The self-assessment is broken into two sections, SA100 and SA200. The vast majority of people only need to worry about the former, which covers the following areas:
Income
The first part of the self-assessment application is to input all relevant data regarding your earnings during the previous tax year. This includes tax and untaxed income from interest earned from dividends and shares.
You can add a total figure for invoices covering all clients billed within that 12-month period rather than adding them all individually but will need to calculate the figure to do this.
Pension contributions
For retired claimants, it will be necessary to enter the State Pension entitlement, State Pension lump sum, lump sums and annuities from non-state pension plans.
If you are (or were) on benefits during this period, you will have to include the total received via Jobseeker’s Allowance or Incapacity benefit, as well as taxable benefits from Bereavement Allowance or Carer’s Allowance.
Other income and deductions
In this section of the application, you will add details of all additional unrelated income that should be taxed via supplementary sheets.
Following this, you will add the income and deductibles of charity donations, registered pension contributions, student loan repayments, marriage allowances, and blind person’s allowance.
Step 4: Completing additional pages
Once you have completed all sections of the SA100, you may have to complete one or more of the following;
● SA103 for supplementary self-employment,
● SA105 for property-based revenue,
● SA108 for capital gains.
The SA200 will only need to be completed if HMRC actually contacts you about it. So, for now at least, you won’t need to worry about it.
Once all of the sections have been completed, the portal should provide a PDF summary that can also be printed. This will detail your income and tax deductions (in sections), followed by the details of payments that are required in January and July.
The payments will have a breakdown of tax, National Insurance and additional features like student loan contributions, if applicable.
Still want help?
If that all sounds a little confusing (or just too time-consuming between now and January 31st), there is another way. Hiring an accountant to prepare and complete your tax return will allow you to bypass almost all of the work. Simply provide your self-employment data along with your invoices and receipts, and your accountant can do the rest - although you will obviously receive regular and clear communication throughout.
To find out how an accountant can complete your self-assessment in the coming days, get in touch with Smart Solutions today!