January might feel far away right now but if there’s one thing we hear from self-employed clients every year, it’s how quickly the self-assessment deadline creeps up on you. Saturday 31st January is the date to have your self-assessment filed and paid up by – so you might want to get organised now, to ease the pressure on you in deepest, darkest January!
Common mistakes to avoid
As is the case for most professions, when you’re dealing with thousands of filings each year, you start to spot the regular pitfalls that clients make when it comes to their self-assessment tax returns. Based on our experience, here’s what to look out for:
Missing or incomplete income
This varies by industry, but you should be certain that all income you have made in the financial year, is accounted for in your return. No matter how diverse your income streams are, you should have a detailed log (preferably digital) of all moneys paid to you throughout the course of the year. If you don’t have this – better start looking back through those bank statements.
Overlooking reliefs and allowances
There are a variety of reliefs and allowances available to you, to minimise your tax liability. When rushing to submit your tax return, these can be easily missed, as can business expenses you’ve incurred but not logged throughout the year. Get on top of those receipts and check with your Accountant for any reliefs applicable to you.
Record keeping issues
If you’re already liable for Making Tax Digital you should have been keeping digital records of all income and expenditure, including invoices, bank transactions, and business expenses (complete with receipts). Getting into good practices with your record keeping will save you a big headache when it comes to filing time.
Payment surprises
The self-assessment model can be a little fiddly, with advance payments based on the previous year’s income, meaning that your tax owed can fluctuate significantly from year to year. Be sure to set aside enough funds throughout the year to cover your tax liability, and if you’re at all unsure, contact your accountant to help them forecast what’s due. If you’ve filed your return in ample time, you can apply to reduce your advance payments if you think your income will be significantly reduced the following year. Another good reason to get everything submitted in good time!
Practical tips to avoid the rush
We understand the temptation to push your self-assessment filing to January, but that can leave you at risk of errors, omissions, or lack of time to appropriately plan for year end. If you use Foxley Kingham to help with your return, submitting all details in December leaves us with ample time to check for issues and advise accordingly as to how it will affect your cash flow for the year ahead. As the age-old saying goes – fail to prepare, prepare to fail. Here’s a few things we recommend you start doing now to get organised ahead of January:
- Bring all income and paperwork together: P60s, pension statements, rental income records, CIS data, dividend paperwork – whatever documentation you have that relates to income, collate it all to ensure you have the paperwork you need for the submission
- Understand the reliefs available to you: Reliefs for pension contributions, capital allowances, and business expenses are all widely available to all, whilst more specialised reliefs are available for NHS pensions, rental expenses for property owners, and R&D allowances for startups. If you don’t have full understanding of these, how will you use them to minimise your tax liability? If at all unsure, check with your FK team who can advise which are appropriate and what evidence is required
- Understand payments on account: Another reason for filing your self-assessment return early, is to assess the impact it has on cash flow, and leave time to apply for a reduction in your forward payments, if appropriate
Don’t forget that there will be a rush to submit in January, with HMRC helplines becoming overwhelmed with queries. Identifying any issues now, will avoid any stressful – or worse, costly – errors. If you’re not already doing so, it might be time to consider keeping digital records for next year’s return. HMRC’s aim is that, eventually, all individuals completing self-assessment returns will qualify to do so via Making Tax Digital . It might be time to get ahead of the game.
How we can help
At Foxley Kingham, we can assist with self-assessment filings by:
- Reviewing records to ensure nothing has been missed
- Preparing calculations and projections to give you full understanding of its impact on your businesses, or simply to prevent surprises
- Filing returns on your behalf, managing HMRC queries, and offering tailored advice in line with your future plans
- Assisting with forward planning to help you get organised ahead of 5 April 2026
To arrange a confidential discussion, get in touch with our team at accountants@fkca.co.uk / 01582 540800.