Preparing for Your 2023/24 Tax Return

By Graham | April 15, 2023

As the new tax year has commenced, we at Mercian Accountants would like to offer you some advice on managing your self-assessment tax returns. By staying informed of the upcoming tax deadlines and understanding the nuances of the process, you can be better prepared for your tax responsibilities and avoid any last-minute stress.

Table of Contents

When to register for self-assessment?

Typically, you should register for self-assessment by October of the preceding year. This is particularly important if you are self-employed or a sole trader, are no longer self-employed, or need to register a partnership. The registration process involves providing your personal details, such as your name, address, National Insurance number, and information about your business. You can complete the registration process on Gov.uk.

Record-keeping for self-assessment

Maintaining accurate and up-to-date records of your income and expenses throughout the tax year is essential for a smooth self-assessment process. Keep track of all invoices, receipts, bank statements, and other relevant financial documents. Good record-keeping will help you file your tax return more efficiently and provide necessary evidence in the event of an HMRC inquiry.

Understanding tax bands and rates

Familiarise yourself with the current tax bands and rates to calculate your tax liability accurately. Income tax rates and thresholds change most tax years, so staying up-to-date with the latest information is essential. Remember that income from different sources, such as employment, self-employment, rental income, and dividends, may be taxed differently.

Claiming allowances and reliefs

Make sure to claim any applicable tax allowances and reliefs, which can help reduce your tax bill. Some common examples include Personal Allowance, Marriage Allowance, and tax relief on pension contributions. You may also be eligible for tax reliefs specific to your profession or industry, so it’s essential to research and claim any reliefs you are entitled to.

When to file your tax return

The deadline for paper tax returns is October 31, while the deadline for online tax returns is always January 31. However, once the new tax year begins, you can file a return at any time up until the deadline. Filing your return early can help you avoid last-minute stress and allow you more time to address any discrepancies or errors.

When to pay your tax

The deadline to pay your tax is January 31. The deadline for making a payment on account is the following July. Be aware that late payments may result in interest and penalties, so making payments on time is crucial.

Varying deadlines based on circumstances

Please note that deadlines may vary slightly depending on your circumstances. For example, if you want HMRC to automatically collect the tax you owe from your wages and pension, you must submit your online return by December 30. Your deadline will also differ if you are in a partnership, and its accounting date is between February 1 and April 5. In this instance, the deadline for online returns is 12 months from the accounting date, while the deadline for paper returns is nine months from the accounting date.

Conclusion

By staying well-informed and proactive about your self-assessment tax return, you can ensure a smooth process and avoid any unnecessary stress. If you have any questions or require further assistance, please don’t hesitate to contact us at Mercian Accountants.