Tips when filing your self assessment tax return

Were you one of the 25,000 eager taxpayers who filed their 2021/22 tax return on New Years Eve? Or are you one of the estimated five million who still have to file their tax return? Putting off this task until... Read more

10 Jan 2023

Were you one of the 25,000 eager taxpayers who filed their 2021/22 tax return on New Years Eve?

Or are you one of the estimated five million who still have to file their tax return?

Putting off this task until the last minute means it’s easier to make mistakes or to forget to include important information.

For the first time HMRC have launched a digital assistant to help tax payers with their questions.

In our experience here are some of the common areas that taxpayers overlook when filling in their tax return.

Casual income.

If you received any casual income, new interactive guidance is available to check whether the income has to be declared. This might include:

selling things, maybe online, or at car boot sales and auctions;
doing casual work, such as gardening, cleaning, food delivery or babysitting;
charging for the use of equipment and tools; and
renting out property or part of your home (including for holidays).

Expenses

For employees and directors, make sure you claim tax relief for any job-related expenses which your employer has not reimbursed. With professional fees or subscriptions, remember to include the amount paid during 2021/22, as these usually increase annually.

Where your own car, motorcycle or bicycle is used for work, a deduction can be claimed based on HMRC approved mileage rates. Remember that travel to and from work only counts if it’s to temporary workplaces.

If you have been required to work from home you may be eligible to claim £6 a week for 2021/22 to cover the additional cost.

(Please be aware that the rules changed if you worked from home on or after 6 April 2022 when completing your tax return next year).

Benefits

For employees and directors, don’t forget to include any taxable benefits listed on your P11D if not automatically included by HMRC. Include interest and dividends received, although you can ignore ISA income.

Ask ‘Have I sold anything?’

CGT may be due if you’ve sold property (not your main home) or land, shares or other assets for a profit.

For more information on CGT please click here.

There’s help available.

HMRC releases live webinars on ‘how to complete your tax return’ and registration is via their website.