How to File a Self-Assessment Tax Return Online: A Step-by-step Guide

Taxes for all pensioners and employees are automatically deducted from their source wages through the Pay As You Earn (PAYE) scheme.

If you're a trader or receive income from other sources not taxed automatically, you need to report it to HMRC through the self-assessment tax return online or as a paper tax return every year.

Filing your self-assessment tax return online can be a daunting process. Prior planning and preparation will make it smoother, and you can file your returns before the 31st January deadline.

Who is Eligible for Filing a Self-Assessment Tax Return Online?

If you're self-employed, you must submit your self-assessment tax returns annually. This covers your national insurance and income tax on trade profits.

If your primary income is from a pension or wages, you may still need to send a self-assessment tax return online if you earn more than £100,000 from other sectors.

These other sources include private pensions, investment income, tips and commissions, renting, and foreign income.

If you operate a limited company, you must file a company tax return and a self-assessment tax return online for your personal income.

How to File a Tax Return: Step-by-Step

1. Register for Self-Assessment

If you're new to self-assessment, the first step is to register with HMRC. You can do this online through the HMRC website or seek help from a tax advisor.

The registration process varies depending on whether you're self-employed, part of a partnership, or employed.

If you've registered before, you'll only need your Unique Taxpayer Reference (UTR) number to log in and submit your self-assessment tax return online.

2. Use the UTR Number for Setting up the Government Gateway Account

After registering, you'll receive a UTR number. If you can't find it, contact HMRC for assistance. The number comes with instructions on setting up a Government Gateway account.

3. Gather All Details Needed to Submit Your Returns

While waiting for your activation code (which may take up to 20 days), gather all necessary information for filing your self-assessment tax return online.

Information you'll need includes:

• Your National Insurance number
• Your UTR number
• Records of all expenses related to your trade, such as operational costs, staff costs, rent, and marketing
• Details of all income from your business, rent, overseas earnings, dividends, or investments
• Details of any partial tax payments already made

4. Fill in Your Tax Return and Submit

Once set up, it's time to carefully fill in your self-assessment tax return. Take your time, as you can save drafts and continue later.

Review all the information before submitting your self-assessment tax return online.

After submission, you'll receive a confirmation code, which you should keep for reference. HMRC will calculate your tax due, and you'll need to pay it before the deadline.

Important Dates to Keep in Mind

• 31st January: This is the deadline for filing your self-assessment tax return online and paying your tax. Late submissions result in a £100 penalty.
• 5th April: End of the tax year. From 6th April, the new tax year begins. If you were self-employed between 6th April 2020 and 5th April 2021 and earned more than £1,000, you must file a self-assessment tax return online.

If the deadline falls on a weekend or holiday, ensure your payment reaches HMRC on the last working day before the deadline.