What is Self assessment tax return?

A self assessment tax return is a form that needs to be filled in by individuals who need to pay tax. It allows taxpayers to calculate their own liability for the given tax year, and declare any income or profits from their business activities.

This includes income from employment, pensions, savings interest and other sources of income. The self assessment method requires individuals to declare their own taxable incomes as well as allowable expenses incurred during the year, such as mileage and office costs if they have a business.

By filling out this form, taxpayers can compute how much they owe in taxes and determine whether they qualify for any tax credits or deductions. Additionally, with a self assessment tax return, individuals not only report their income but also file for certain reliefs available such as capital gains, charitable donations and pension contributions.

Who has to file Self Assessment tax return?

Generally, all self-employed individuals must file a Self Assessment Tax Return (SATR). This applies to sole traders, freelancers, contractors, limited companies and partnerships. The individual or business must register with HMRC before filing the SATR. VAT registered businesses must also submit a VAT return, usually along with the SATR. Businesses may be liable for paying various taxes such as Corporation Tax, Income Tax and National Insurance contributions on their profits after expenses:

  • You were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
  • You were a partner in a business partnership
  • You earned £100,000 or more

You may also need to send a tax return if you have any untaxed income, such as:

These may be because:

  • You are a company director
  • You have large amounts of savings or investment income
  • You have untaxed savings or investment income
  • You own land or property that is being let
  • Your household receives Child Benefit and you have income in excess of £50,000
  • You have income from overseas
  • You have sold or given an asset away (such as a holiday home or some shares)
  • You’ve lived or worked abroad or aren’t domiciled in the UK

Despite the staff at HM Revenue & Customs being ever so helpful, they are not tasked to provide you with advice on how to organise your financial affairs and minimise your tax. Therefore, if you want to make sure you are paying the right amount of tax, you should consult a professional.

We use HM Revenue & Customs-approved software to:

  • Complete your tax return
  • Calculate your tax liability and tax due
  • File the return online
  • Liaise with you on the amounts to be paid and when they are due

As part of the above service, we can analyse your self assessment tax return to see if any tax savings can be made and we can also review the form to see if there are any anomalies that need to be addressed before the return is submitted. This process helps to minimise your risk of a HM Revenue & Customs enquiry into your tax affairs. If you are experiencing cashflow problems, we can explore the possibilities of deferring your tax payments or negotiating a payment plan with HM Revenue & Customs on your behalf.

By giving you a fixed, competitive price, we can take the worry away when it comes to self assessment tax returns.  Some people worry about what they’re not good at. Don’t. Concentrate on what you are good at. You can outsource what you’re not good at and that’s why we offer our service to business like yours in areas such as Lowton, Newton-le-Willows, Culchetch, Leigh, Wigan, Ashton-in-Makerfield, Culcheth, Warrington, Manchester and Liverpool.

Accounting software

Should you decide to process your books yourself and opt out of outsourcing bookkeeping/accounting services, accounting software will help you prepare your cashflow forecast, allowing you to update your projections if there’s a change in market trends or your business situation. Planning for seasonal turnover and profit changes is simplified and you can also make “what if” calculations.

Most banks require profit and balance sheet forecasts as well as cashflow, should you require their services or products. Many accounting packages will assist with preparing these documents. We love XERO, and this is the software we would be using should you wish us to process your books for you.

When is SATR due and when to file it?

File your self assessment tax return as soon as possible (6th April)! In the UK, the deadline for submitting returns is 31st of January. You can submit an online self assessment return or if you would prefer a paper return (by 31st October), you can do one by post (by 31st January). Make sure to look into Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) and see if you’re eligible and what steps to make to be ready for 2026 or later depending on your turnover. Don’t leave it too late – filing early will give you peace of mind that everything is done and help avoid any penalties if there’s a delay.

How to file SATR ?

Filing your own taxes can seem like a daunting task. However, with the right steps and resources in place, it doesn’t have to be so difficult. So let’s review what you need to do when filing your self assessment tax return.

First, obtain your total income from any employment and figure out how much of that gets taxed by HM Revenue & Customs.

Next, satisfy any National Insurance payments you owe if appropriate. Third, calculate your deduction eligibility and submit all your paperwork – receipts and payslips included!

Finally October 31 is the deadline for submitting your return online via the HM Revenue & Customs website. Once done you can rest assured that everything has been filed correctly and you don’t have to worry about taxes for another year!

Do you want to learn more? Arrange a quick meeting.

How to do your own self-assessment tax return?

Filing your SATR doesn’t have to be a complicated process. You can do it through your own gov.uk account, meaning that everything is stored quickly and securely in one place. Additionally, there are some software solutions which will allow you to file the correct form quickly and efficiently.

It is an important, yet often stressful process. For those of you who want to do it yourself, there is a wide range of software available that can guide you through the entire process. The HMRC website allows you conveniently access and use their government-approved software for free – all you need to do is set up a gov.uk account first. Alternatively, if you have accounting experience and would prefer to follow paper forms, those are also available for download from the website. If none of these options suit your needs, don’t hesitate to post a question on your bookkeeper’s page and ask for professional assistance.

There are top 10 software solutions available for filing self assessment tax returns in the UK. Some of the more popular options include:

1. HMRC’s own Self Assessment Tax Return software

To use this service, you’ll need to sign in using your Government Gateway user ID and password.

You’ll also need your Unique Taxpayer Reference (UTR) number.

You do not have to complete your return in one go. You can save your entry and go back to it later if you need to sign in

2. QuickBooks Online Self-Assessment

Preparing for Self Assessment? We’ve got your back. Take the stress out of tax time and feel confident about your tax returns with QuickBooks’ Self Assessment software.

3. TaxCalc by Intuit

Simple, practical and innovative software for accountants, individuals and self-employed. Trusted by tens of thousands of people to complete and file their tax returns every year. Cloud enabled. Easy Data Migration. Services: Self Assessment, Accounts Production.

4. GoSimpleTax

GoSimpleTax is a highly awarded online tax return and self assessment software. File your self assessment tax return online to HMRC with little hassle.

5. Andica Self Assessment Personal

A self assessment tax return solution suitable for use by individual taxpayers. The software helps you simplify and manage your tax returns preparation, calculations of tax and online submission of returns to HMRC. This edition is available in two options, 1 tax-payer edition to prepare tax returns for 1 taxpayer or a 5 tax-payers edition suitable for preparation of up to 5 tax returns from a single installation.

6. XERO

It’s far easier to submit returns using Xero™ compared to traditional desktop software.

7. SAGE

All businesses need MTD-compliant software following the 1 November change to the way VAT returns are filed. Get started with MTD-compliant software today, then submit your return direct to HMRC. With software like Sage Accounting, it’s simple.

8. ABC Self Assessment

  • For a better experience than the HMRC website
  • Ideal for:
    • UK taxpayers living overseas
    • Individuals with income from a trust
    • Ministers of Religion

9. FreeAgent

Join the 9 out of 10 business owners who feel more confident about their business’s finances when they use FreeAgent*.

  • File your Self Assessment direct to HMRC
  • Know how much tax you owe and when you owe it
  • Use FreeAgent’s built-in support to help you understand and fill out your tax forms

10. Taxfiler

The perfect choice for online filing. Taxfiler is the easy online alternative for taxpayers who cannot use the free HMRC software. With support for all required forms, and complete with accurate tax computations, thousands of people submit their tax returns every year using Taxfiler

Each software package offers different features and levels of support to help make filing self assessment tax returns easier. Many also offer free trials or discounts to encourage users to try them out.

If all of this still seems a bit confusing however, you can always ask your bookkeeper or accountant to take care of it for you – they will know exactly what to do!

What’s included within Self assessment tax return?

When you are filling out your self assessment tax return, there are some important items to keep in mind. You must not forget to include any sales and credit notes you’ve issued, as well as any direct costs such as wages or materials.

Think of any items that were not shown on your bank account and add them into the calculations so you don’t end up paying too much tax.

The Self Assessment Tax Return in the UK includes income and expenses from different sources, such as:

  • Income from employment;
  • Profits from self-employment;
  • Investment income;
  • Rental income or gains from property sales;
  • Money from pensions, annuities and state benefits;
  • Any other untaxed income. The expenses included in a Self Assessment Tax Return may include:
  • Business expenses for self-employed individuals;
  • Interest payments on mortgages or loans;
  • Gifts to charity (over £250);
  • Fees paid to accountants or tax advisers;
  • Fees paid for medical treatments or care services;
  • Fees paid for subscriptions and membership fees.

It is always best to seek help from a bookkeeper or accountant to ensure everything is done correctly and in order to prevent an investigation from HMRC that may lead to additional fees for professional help dealing with them.

Give yourself peace of mind by double-checking all the figures before submission – that way if you have calculated something incorrectly, you won’t have to face potentially hefty fines!