Self-Assessment Tax Returns: Common Mistakes and Available Reliefs

Filing a self-assessment tax return can be challenging, especially if you’re unfamiliar with the process or navigating it for the first time. Mistakes are common—but the good news is, there are reliefs available to help ease the burden. Here’s what you need to know.

Common Mistakes to Avoid:

1. Missing the Deadline
   Late submissions can lead to automatic fines and interest on unpaid taxes.

2. Incorrect or Incomplete Information
   Simple errors like entering the wrong figures, forgetting income sources, or not claiming eligible expenses can result in penalties or overpaid taxes.

3. Not Keeping Proper Records
   Failure to maintain accurate records can make it difficult to complete your return and defend against any HMRC queries.

4. Forgetting to Declare All Income
   Many people forget to include freelance work, rental income, dividends, or foreign earnings, which could lead to underpayment of tax.

5. Claiming Ineligible Expenses
   Incorrect expense claims are a red flag for HMRC and can lead to an audit or penalties.

Reliefs and Support Available:

• Tax-Free Allowances
  You may be entitled to personal allowances, marriage allowance, or trading income allowance, depending on your situation.

• Expense Deductions
  Legitimate business expenses can be deducted to reduce your taxable income.

• Loss Relief
  If your business made a loss, you might be able to offset it against other income or future profits.

• Pension Contributions and Gift Aid
  These can provide additional tax relief if properly declared on your return.

• Professional Help
  Working with a tax advisor or accountant can help you file accurately, claim all available reliefs, and avoid unnecessary penalties.

Filing your tax return correctly and on time can save you stress, money, and potential trouble with HMRC. If in doubt, don’t hesitate to seek expert advice. Contact Find Totals Now