The deadline for individuals choosing to complete their self-assessment via post is midnight 31st October.
With the deadline for postal self-assessments now only two weeks away, Trusha Shah, Tax Manager at accountancy firm HW Fisher, outlines who needs to complete a self-assessment and how to avoid a web of mistakes.
“Last year 96% of people chose to complete their self-assessment tax return online. This means that while an overwhelming majority prefer to do their returns digitally, there are still some individuals who prefer to complete their return via post.
“If you are planning to complete your tax return by post, remember that the October 31st deadline is the date by which HMRC needs to receive all necessary paperwork – not the last day that you can send your return off in the post. If you don’t think you will have enough time, don’t fear – you can still complete your return online, for which the deadline is the 31st of January 2025.”
Do you need to file a tax return?
You must submit a tax return if you have self-employed earnings or have received untaxed income over £1,000, and if HMRC have issued a notice to complete one.
However, it’s not just the self-employed who have to complete their self-assessment tax returns. You will also have to file if you have any untaxed income from:
- Money earned through renting a property, including via Airbnb.
- landlords with rental income of £10,000 gross or over (net £2,500+).
- Tips and commission.
- Income from savings, investments and dividends.
- Foreign income.
If you are a non-UK resident, you will either need to file a paper return by October 31st deadline or appoint an agent with the approved software to assist with online filing. If your rental business has commenced since 6 April 2024, please contact your agents to start the registration process with HMRC and obtain a SA UTR number. The registration process with the agent and HMRC can take long.
To register for online tax filing, the individual will need a UK NI number and Postal address (postcode) to set up a government ID account.
Treat yourself to five tips on how to complete your tax return
- Allow yourself plenty of time. Gathering all the paperwork can be a timely process. You will need your P60 which will confirm the total tax deducted at source from income, as well as a record of benefits and expenses which can be found on your P11D or P9D forms. Additionally, if you have left a job in the last tax year, you will also need a P45 from your previous employer.
- Don’t forget to claim tax relief on pension contributions. Make sure you keep details of any pension contributions made so that you can claim the correct tax relief for them.
- Be sure to include charity gift aid payments. You will also need details of all your gift aid payments – e.g., have you sponsored a friend to walk for charity? This can be included as HMRC provides some tax relief on charitable giving.
- Keep a copy of your completed tax return. If you are employed or a pensioner, you should keep all paperwork for 22 months after the end of the tax year. Self-employed people or landlords should keep all paperwork for five years and ten months. You should also keep a proof of postage in case there are any spooky postal delays.
- Take advantage of your personal savings allowance. This can be applied to interest earned on your savings. The interest you receive on your savings could be tax-free up to £5,000 per year.
Are you a non-UK resident? Avoid these grave errors
- Make sure you are not paying tax twice – This is particularly important for non-UK residents with UK investment properties and who are earning rental income. If your agent is deducting tax at source, you should request the HMRC form NRL 6 (usually issued in July), to ensure you are not paying tax twice.
- Sold a property this year? Watch out for Capital Gains Tax (CGT) – If you are a non-resident who has sold or disposed of UK property or land, you will be required to submit a non-residential Capital Gains tax (NRCGT) return. This needs to be submitted within 60 days of completion, regardless of a loss arising on sale. Ensure you inform your tax agent in advance to arrange registration with HMRC including assistance with submission of the NRCGT return. Depending on when the property is acquired and the kind of property (residential/commercial), a market value either in April 2015 or April 2019 may be required to compute the capital gain or loss. If you miss the filing deadline, late filing and payment charges may apply.
Shah adds: “To avoid the risk of your return getting lost in the post, and to allow yourself more time to gather all the information that you need to complete your tax return accurately, we’d always recommend completing your return online. If you’ve not done it this way before, don’t worry – the process is very simple and there’s plenty of advice and tutorials available on HMRC’s website that you can follow.”
