Common Mistakes: Self Assessment Tax Returns
7th August 2024
It’s helpful to know the common mistakes people make when completing Self Assessment tax returns (SATR).
We know that filing your SATR can often feel like a daunting task, especially with the complexities of tax rules and looming deadlines. At Whitings LLP, we understand the challenges taxpayers face and are here to help you navigate through them.
Here are some of the most common mistakes people make when completing their Self Assessment tax returns and how to avoid them:
Missing the Deadline
One of the simplest yet costly mistakes is missing the filing deadline. For the 2023/24 tax year, the deadlines are:
– Paper returns: 31 October 2024
– Online returns: 31 January 2025
Failing to meet these deadlines results in immediate penalties, starting at £100, which escalate if the delay continues.
Not Declaring All Income
It is crucial to declare all sources of income, not just your main employment or business. This includes:
- Rental income
- Interest and dividends
- Overseas income
- Previous employment that ended during the tax year
Incorrect Expense Claims
Ensure the expenses you claim are legitimate, allowable and directly related to your business activities. Any private use should be disallowed, so keep clear records of all business expenses to back up your claims.
Overlooking Payments on Account
If your tax bill exceeds £1,000, you may need to make payments on account towards the following year’s tax liability. Many overlook this requirement and face unexpected bills.
Forgetting to Include Other Charges
As well as tax and NICs you may also need to include other charges through your Self Assessment, such as:
- Student Loan repayments if your earnings exceed the threshold
- High Income Child Benefit Charge if your household receives Child Benefit and your income is over £50,000 for 2023/24 or £60,000 for 2024/25
Get In Touch
Avoiding these common mistakes can make completing your Self Assessment easier and less stressful. We ensure our clients’ tax returns are accurate and submitted on time.
Contact your local office today for professional assistance and peace of mind in your tax affairs.
Disclaimer - All information in this post was correct at time of writing.
