Published: 02/01/2025 By Hannah Duncan
With the self-assessment tax deadline fast approaching on 31st January 2025, we offer some tips to help those who want to get ahead of the game and file early:Avoid Penalties
Missing the deadline automatically results in a £100 fine from HMRC, plus interest on any unpaid tax. Delays beyond three months can lead to even higher costs.
Be Prepared for Changes
This year’s tax return includes updates, such as:
• Reporting cryptocurrency gains
• Simplified filing for some high earners.
Gather Your Paperwork First
Whether you're a small business owner or an individual taxpayer, having the right documents ready will make filing smoother. Start by collecting essential documents, including:
• P60/P11D forms from employers
• Bank interest certificates
• Pension income details
• Gift Aid donations
Check the Right Tax Year
Ensure your documents are for the tax year ending 5 April 2024. Using the wrong year’s P60 or salary information can cause errors.
For the self-employed:
• Report business profits for the relevant accounting period
• If your accounting year doesn’t align with the tax year, remember that 2023/24 is a transition year under basis period reform
Report Bank Interest Correctly
• Include all bank interest received up to 5 April 2024
• For joint accounts, report only your share
• Exclude interest from ISAs, as it’s tax-free
Understand Marriage Allowance
• If your income is below the personal allowance (£12,570), you may be able to transfer unused allowance to a higher-earning partner (basic rate taxpayer)
• Ensure this is entered correctly on the return
Don’t Leave It to the Last Minute
Filing late increases the risk of mistakes and system delays as HMRC’s online service gets busier the nearer to 31st January you get.