How to Prepare for the Self-Assessment Tax Return Deadline (31st January)

In this article:

• Mark Important Dates for Self-Assessment 2025
• Start Preparing for Self-Assessment 2025
• Use a Tax Return Checklist for Self-Employed Individuals
• Understand How to Complete Self-Assessment
• Avoid Common Self-Assessment Tax Return Mistakes
• Tax Return Tips for Freelancers
• Filing Self-Assessment Tax Returns on Time
• How CloudAccountant.co.uk can help you prepare for the Self-Assessment Tax Return Deadline

Before diving into your tax return, it’s important to know the key important dates for self-assessment 2025. Even though the self-assessment tax return deadline for 2024 is January 31, 2025, you’ll need to keep track of upcoming deadlines throughout the year. Here’s a quick overview:

• April 5, 2024: End of the tax year (2023/2024)
• July 31, 2024: Second payment on account due for the tax year 2023/2024
• January 31, 2025: Self-assessment tax return deadline (for the 2023/2024 tax year)
• April 5, 2025: End of the 2024/2025 tax year

By marking these dates on your calendar, you’ll stay on top of when to submit your returns and make any necessary payments.

While the immediate deadline may seem like a distant concern, it’s never too early to start preparing for self-assessment 2025. By setting aside time to organise your finances now, you can avoid the last-minute rush next year. Here’s how to begin preparing:

As a freelancer or self-employed individual, it’s vital to keep detailed records of all income and expenditure. Whether you use accounting software, spreadsheets, or a paper ledger, keep everything up-to-date.

Many freelancers miss out on claiming allowable expenses, which can significantly reduce your taxable income. These might include things like office supplies, business travel, and even part of your home utilities if you’re working from home. According to The Telegraph, Freelancers are missing out on £24m in tax cuts every year as they fail to claim small expenses.

To ensure that you don’t miss anything when filing your return, create a tax return checklist for self-employed individuals. Here’s a quick guide to the key documents and details you’ll need:

• Income records: Gather invoices, payslips, and any other income statements.
• Expenses: Receipts for business-related purchases (e.g., equipment, supplies, software subscriptions).
• Mileage records: If you use your car for business, track your mileage.
• Bank statements: To verify your income and expenses.
• National Insurance contributions: Check if you’ve paid voluntary contributions.
• Pension contributions: If you contribute to a pension scheme, keep track of payments.

Filing your self-assessment can feel overwhelming, but it’s simpler than it appears once you know how to proceed. Here’s a general guide on how to complete self-assessment:

• Register with HMRC: If you haven’t already, you must register with HMRC for self-assessment. If you’ve filed before, you should already be registered, and you’ll receive a Unique Taxpayer Reference (UTR) to use when filing your return.
• Choose your filing method: You can file your tax return online, which is the most popular option. Alternatively, you can submit a paper return, but keep in mind that the paper return has an earlier deadline (October 31) and filing online offers more flexibility.
• Complete the required sections: Depending on your situation (e.g., self-employed, receiving rental income, etc.), you’ll need to fill in various sections. Freelancers should focus on the self-employment section, detailing their income and expenses.
• Review and submit: Double-check everything before submitting. Any mistakes can result in delays or penalties, so ensure accuracy.

Even seasoned freelancers can make self-assessment tax return mistakes, so it’s important to be cautious. Here are some common errors to avoid:

• Failing to keep adequate records: Incomplete or inaccurate records can lead to incorrect returns. Make sure you track every source of income and claim all valid business expenses.
• Missing the deadline: Late submissions can result in penalties. Aim to submit your return well before the self-assessment deadline January 31.
• Incorrect calculations: If you’re unsure about your calculations, consider using tax software or hiring a professional to avoid errors that could cost you.
• Not claiming enough allowable expenses: Freelancers often overlook expenses that can reduce their taxable income. Be sure to claim everything you’re entitled to.

Freelancers often face additional complexities when it comes to taxes. We offer an Accounting Guide for freelancers. Here are a few tax return tips for freelancers to help make your filing process smoother:

• Separate personal and business finances: It’s crucial to have a dedicated business account and use it exclusively for business transactions. This will make tracking income and expenses far easier.
• Use accounting software: Accounting tools like Xero or QuickBooks can help freelancers track their income and expenses throughout the year, making it simpler when the time comes to file your return.
• Pay attention to the self-assessment payment schedule: If you’re required to make payments on account, ensure you understand the deadlines to avoid penalties.

One of the most critical aspects of filing self-assessment tax returns is submitting them by the due date. The self-assessment deadline January 31 applies to all online returns, and failing to meet this deadline can result in significant penalties. Here’s a breakdown of what you can expect if you’re late:

• Late filing penalty: £100 for missing the deadline, even if no tax is due.
• Additional penalties: After three months, further fines are imposed, and interest accrues on any unpaid tax.

Filing your self-assessment tax return doesn’t have to be a stressful experience. By staying organised, using a tax return checklist for self-employed individuals, and starting your preparations early, you’ll have plenty of time to submit your return accurately and on time. If you’re unsure about any part of the process, don’t hesitate to consult with a tax professional—they can help you avoid costly mistakes and ensure that your return is completed correctly. Learn more about our self-assessment accountancy services here.

As you approach the self-assessment tax return deadline on January 31, remember: proper preparation is key to a smooth, stress-free filing experience. Whether you’re a freelancer, a contractor, or self-employed, following these tips will set you on the right path to meeting your obligations and avoiding penalties in the years to come.

If you’d like to know more about how we can help, you can speak to one of our team by completing the form on our website, emailing: team@cloudaccountant.co.uk or giving us a call on 01625 546 232.