Confused about self-assessment, tax filing, or bookkeeping? You’re not alone. Find clear answers to all your questions right here.
A Self Assessment tax return (SA100) is the form HMRC uses to collect information about your income and calculate how much tax you owe. Unlike employees who have tax automatically deducted through PAYE, Self Assessment is for people whose tax situation is a little more complex. You fill it in once a year and it covers everything from self-employment income to rental profits and investments.
You will need to file a Self Assessment return if you are self-employed, a sole trader, a partner in a business, or if you earn income that is not taxed at source. This includes rental income, foreign income, dividends, capital gains, or if you earn over £100,000 a year. If you are unsure whether you need to file, just get in touch and we will let you know straight away.
Your UTR is a 10-digit number that HMRC assigns to you personally. Think of it as your tax ID. You will need it every time you deal with Self Assessment. If you have already registered with HMRC, your UTR will be on any letters they have sent you. If you have never registered before, we can help you do that and get your UTR sorted.
Yes, absolutely. If this is your first time, do not worry at all. We handle the registration process with HMRC on your behalf, get your UTR set up, and make sure everything is in place before your first return is due. It is one of the most common things we help new clients with.
Yes, you do. Even if your employer deducts tax through PAYE, any income you earn outside of that, such as from freelance work or a side business, needs to be declared through Self Assessment. The good news is we handle this type of return regularly and we make sure both income sources are reported correctly.
If you are filing online, the deadline is 31st January following the end of the tax year. So for the 2023/24 tax year, the online filing deadline is 31st January 2025. If you prefer to file a paper return, the deadline is earlier, on 31st October. We always aim to get your return submitted well before the deadline so there is no last-minute stress.
Any tax you owe is also due by 31st January. If your tax bill is over £1,000, you may also need to make Payments on Account in July. We will walk you through exactly what you owe and when, so there are no surprises.
Missing the deadline can be costly. HMRC charges an automatic £100 penalty if you file even one day late. After three months, daily penalties of £10 start to add up. After six months, a further 5% surcharge is added on top of any unpaid tax. The longer it goes, the worse it gets. If you are worried about a missed deadline, speak to us and we will help you sort it out as quickly as possible.
Yes, we can. We deal with late and prior year returns regularly. We will work out what you owe, reduce any penalties where possible, and get everything filed with HMRC to bring you back up to date. It is always better to deal with it sooner rather than later.
Yes. Receiving a letter from HMRC can feel quite stressful but please do not ignore it. Send it over to us and we will review it, explain what it means, and if there are grounds to appeal, we will handle that on your behalf. In many cases, penalties can be reduced or even cancelled if there is a reasonable excuse.
For the 2024/25 tax year, the rates are as follows. You pay no tax on the first £12,570 of income, which is your Personal Allowance. Income between £12,571 and £50,270 is taxed at 20% (Basic Rate). Income between £50,271 and £125,140 is taxed at 40% (Higher Rate). Anything above £125,140 is taxed at 45% (Additional Rate). Scottish residents have slightly different rates. We will always calculate your tax based on your specific situation and make sure the right rates are applied.
Most people in the UK are entitled to a Personal Allowance of £12,570, which means you pay no tax on income up to that amount. However, if you earn over £100,000, your Personal Allowance starts to reduce gradually. There are also other allowances you may be entitled to depending on your situation. We review all of this as part of preparing your return.
Yes, this is exactly the kind of work we do every day. Whether you have employment income, self-employment income, rental income, dividends, and savings interest all in the same year, we will pull it all together accurately and make sure everything is reported correctly to HMRC.
Yes, it is. Rental income from UK or overseas properties needs to be declared on your Self Assessment return. We will calculate your taxable rental profit, make sure allowable expenses are claimed, and check whether you are eligible for the Property Allowance or any other reliefs. Landlords are one of the most common types of clients we work with.
Yes, we do. Foreign income, whether it is from employment abroad, overseas rental properties, or foreign investments, needs to be declared in the UK if you are a UK tax resident. We have experience handling returns with foreign income and we will make sure any double taxation relief or foreign tax credits are applied correctly where applicable.
Yes, both are included. Dividends and capital gains each have their own allowances and tax rates, and they need to be reported separately on your return. We will make sure everything is accounted for properly and that you are not paying more tax than you need to.
If you are self-employed, you can claim a wide range of allowable business expenses, including office costs, travel, marketing, professional fees, equipment, and more. The key rule is that the expense must be wholly and exclusively for business purposes. We will go through your income and expenditure carefully to make sure everything claimable is included.
Simplified expenses are available to sole traders and some partnerships. They allow you to use flat rates set by HMRC instead of working out exact costs, which makes things a lot easier. They cover three main areas: business use of your home, using a vehicle for work, and living at your business premises. It is a popular option for people who want to keep things straightforward without losing out on legitimate claims.
Yes, you can switch, but there are a few things to consider. If you have been using simplified expenses for your vehicle, for example, and want to switch to actual costs, you will need to keep detailed records going forward. We will advise you on which method works out better financially for your situation before making any changes.
The Property Allowance lets you earn up to £1,000 a year from property income completely tax free. If your rental income is below this threshold, you do not even need to declare it. If it is above £1,000, you can still use the allowance to reduce your taxable income instead of claiming individual expenses. We will check which approach saves you the most tax.
Yes, always. This is one of the most important parts of what we do. There are many reliefs and allowances that people simply do not know they are entitled to, from Marriage Allowance to pension contributions relief, Gift Aid, and more. We carry out a full review every time to make sure you are not overpaying.
Payments on Account are advance payments towards your next year’s tax bill. HMRC requires them if your Self Assessment tax bill is over £1,000 and less than 80% of your tax was collected at source through PAYE. You make two payments, one by 31st January and one by 31st July. We will explain exactly how much you need to pay and when, so it never catches you off guard.
Yes, we do. Once your return is submitted, we will tell you exactly how much tax is due and when it needs to be paid. You can pay HMRC directly online through your Government Gateway account, by bank transfer, or by debit card. We will guide you through the process and make sure you pay the right amount to the right reference.
Yes, and this is more common than people think. If you have overpaid through PAYE or made Payments on Account that turned out to be higher than your actual bill, HMRC will owe you a refund. We will identify any overpayment as part of preparing your return and make sure a repayment is requested.
Once your return is submitted, HMRC typically processes refunds within 2 to 4 weeks if filed online, though it can take longer during busy periods. We will let you know what to expect and follow up if there are any delays.
HMRC requires sole traders to keep their records for at least 5 years after the 31st January filing deadline for that tax year. So for the 2023/24 return, you need to keep records until at least January 2030. This includes invoices, receipts, bank statements, and any other supporting documents. Keeping good records also makes the whole process much smoother when it comes to preparing your return each year.
Yes, you can amend your return up to 12 months after the original filing deadline. So if you filed your 2023/24 return in January 2025, you have until 31st January 2026 to make any corrections. After that window closes, any changes would need to go through a formal process with HMRC. If you think something needs correcting, let us know and we will handle it.
An emergency tax code is applied by HMRC when they do not have enough information about your income to work out the right tax code. It usually means you end up paying more tax than you should, at least temporarily. It often happens when you start a new job or receive income from a new source. The good news is that any overpaid tax can be reclaimed, and we can help you get it sorted quickly.
Yes, we are a fully authorised HMRC agent. This means we can communicate directly with HMRC on your behalf, respond to correspondence, and deal with any queries or issues that come up. You do not need to spend time on hold with HMRC or worry about what letters mean. We handle all of that for you.
Always. We will never submit anything without your review and approval first. Once we have prepared your return, we send it to you along with a clear summary of your income, tax calculation, and anything we have claimed. You can ask questions, request changes, and only once you are fully happy do we go ahead and submit it to HMRC.
