Self Assessment Tax Return 2026: The Complete Guide for the 2024/25 Tax Year

Updated for 2024/25 Tax Year | Deadline: 31 January 2026

Who Needs to File a Self Assessment Tax Return?

Self Assessment is HMRC's system for collecting Income Tax from individuals whose tax is not automatically deducted through PAYE (Pay As You Earn). Approximately 12 million people in the UK are required to complete a Self Assessment tax return each year.

You must file a Self Assessment tax return for the 2024/25 tax year (6 April 2024 to 5 April 2025) if any of the following apply to you:

Self-Employed Individuals

• You were self-employed as a sole trader and earned more than £1,000 (before deducting expenses)
• You were a partner in a business partnership
• Note: The £1,000 threshold will increase to £3,000 before the end of this parliament in 2029

Property Income

• You earned rental income from UK or overseas property
• This includes traditional lettings, holiday lets, Airbnb, and rooms rented in your home above the Rent a Room threshold of £7,500 per year
• Even if your property made a loss, you may need to report it to carry forward the losses

Company Directors

• You are a company director (unless you're a director of a non-profit organisation with no pay or benefits)
• This applies even if you're a director of your own limited company

Investment and Savings Income

• You earned significant untaxed interest from savings beyond your Personal Savings Allowance
• Your dividend income exceeded the Dividend Allowance (£500 for 2024/25)
• You made capital gains above the annual exempt amount (£3,000 for 2024/25)

High Income Earners

• Your total income exceeded £100,000 in the tax year
• Note: High earners can now pay the High Income Child Benefit Charge through PAYE rather than Self Assessment since September 2025, but must opt into this system

Other Circumstances

• You received income from overseas sources
• You earned income from side hustles, freelancing, or gig economy work
• You claimed tax relief on pension contributions or charitable donations
• You need to claim back Marriage Allowance or other allowances
• HMRC has sent you a notice to complete a return

Key Deadlines for 2024/25 Tax Year

The 2024/25 tax year ran from 6 April 2024 to 5 April 2025. Although the tax year has ended, you have until 31 January 2026 to submit your online return.

Before You Start: Essential Documents and Registration

Registration Requirements

If you're filing a Self Assessment tax return for the first time, you must register with HMRC to receive your 10-digit Unique Taxpayer Reference (UTR). This can take up to 3 weeks, so don't leave it until the last minute.

Registration deadlines:

• Self-employed: Register by 5 October after the end of the tax year you started trading
• Other reasons: Register as soon as you know you need to file

Once registered, you'll receive your UTR by post. You'll also need a Government Gateway account to file online. Set this up at www.gov.uk/government-gateway.

Documents You'll Need

Step-by-Step Guide to Completing Your Tax Return

The Self Assessment tax return (form SA100) can seem daunting, but breaking it down into sections makes it manageable. Here's how to complete each part:

Step 1: Access Your Tax Return

Log into your Government Gateway account and select "Complete tax return" for the 2024/25 tax year. The system will automatically save your progress, so you can complete it in multiple sessions.

Step 2: Personal Details

Confirm your personal information is correct, including:

• Full name and date of birth
• National Insurance number
• Current address (this must be up to date)
• Contact telephone number

Step 3: Report All Income Sources

Employment Income

Enter details from your P60 or P45:

• Employer name and PAYE reference
• Gross pay before tax
• Tax deducted under PAYE
• Benefits in kind from P11D (company car, health insurance, etc.)

Self-Employment Income (SA103 pages)

You'll need to complete either the short or full self-employment pages:

• Total turnover (all sales/income before expenses)
• Allowable business expenses (detailed below)
• Net profit or loss (turnover minus expenses)
• If your turnover is under £85,000, you can use the simplified cash basis

Property Income (SA105 pages)

Report rental income from UK properties:

• Total rent received during the tax year
• Allowable expenses (mortgage interest, repairs, letting agent fees)
• Note: Mortgage interest is now restricted to 20% tax relief

Investment Income

Report interest, dividends, and other investment returns:

• Bank and building society interest: Only report amounts above your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate, £0 for additional rate)
• Dividend income: Report all dividends, but you only pay tax on amounts over £500 (the Dividend Allowance for 2024/25)
• Trust and estate income: Any distributions received

Capital Gains (SA108 pages)

If you disposed of assets (sold shares, property other than your main home, crypto):

• Report gains above the annual exempt amount (£3,000 for 2024/25)
• Note: Important change! Capital Gains Tax rates changed on 30 October 2024, so you may need to calculate separately for disposals before and after this date
• Use HMRC's adjustment calculator if needed

Step 4: Claim Tax Reliefs and Allowances

This is where many taxpayers miss out on legitimate deductions. Make sure you claim:

• Pension contributions: Personal contributions to a registered pension (get tax relief at your highest rate)
• Gift Aid donations: Charitable donations extend your basic rate band
• Marriage Allowance: Transfer £1,260 of your personal allowance to your spouse (if you earn less than the personal allowance)
• Trading allowance: £1,000 tax-free allowance for casual trading income
• Property allowance: £1,000 tax-free for property income
• Professional subscriptions: Membership fees for approved professional bodies

Step 5: Review and Calculate

Before submitting:

• Review every section for accuracy
• Check all figures against your source documents
• Ensure National Insurance contributions are correct
• The system will calculate your tax liability automatically

Step 6: Submit Your Return

Once you're satisfied everything is correct:

• Submit your return electronically
• You'll receive an immediate on-screen acknowledgment
• HMRC will email you a submission receipt
• Note your calculation reference number for your records

Allowable Expenses: What You Can Claim

Claiming all legitimate business expenses is crucial for reducing your tax bill. HMRC allows you to deduct expenses that are "wholly and exclusively" for business purposes.

Common Allowable Expenses for Sole Traders

Allowable Expenses for Landlords

Property landlords can claim:

• Letting agent fees and management fees
• Legal fees for lets of a year or less, or for renewing a lease
• Accountancy fees
• Buildings and contents insurance
• Maintenance and repairs (but not improvements - these may qualify for other reliefs)
• Utility bills (if included in the rent)
• Ground rents and service charges
• Council Tax (if you pay it as the landlord)
• Services like gardening or cleaning for communal areas
• Mortgage interest - now restricted to 20% tax relief only

Often Missed Tax Reliefs (Even Accountants Miss These!)

This section covers legitimate tax reliefs that are frequently overlooked, even by professional accountants. These can save you hundreds or thousands of pounds.

Advanced Tax Planning Strategies

Timing of Income and Expenses

Strategic timing can significantly impact your tax bill:

Deferring Income

If you're close to a tax threshold (£50,270 for higher rate, £100,000 for personal allowance taper, £125,140 for additional rate), consider deferring income to the next tax year if possible. Delay invoicing or defer receipt of bonuses.

Accelerating Expenses

If you're having a high-income year, consider bringing forward planned purchases or expenses to reduce your profit. Purchase equipment before 5 April rather than after, or pay for annual subscriptions early.

Income Smoothing with Pension Contributions

Large pension contributions can bring you down into a lower tax bracket. If you earned £60,000 and contribute £10,000 gross to your pension, your taxable income drops to £50,000, keeping you in the basic rate band.

Optimising Director's Salary vs. Dividends

If you run your business through a limited company, the optimal strategy for 2024/25 is typically:

• Take a salary up to the National Insurance threshold (£12,570) - this uses your personal allowance
• Take the remainder as dividends up to the basic rate threshold
• Remember the dividend allowance is only £500 for 2024/25 (down from £1,000 previously)

Use our salary vs. dividend calculator to find your optimal split.

Capital Gains Tax Planning

Use Your Annual Exemption

The Capital Gains Tax annual exempt amount is £3,000 for 2024/25. Consider realising gains up to this amount each year, especially if you're rebalancing investments.

Bed and Spouse/ISA

Sell assets to use your CGT allowance, then have your spouse repurchase them, or sell and immediately repurchase in an ISA to shelter future gains.

Loss Harvesting

If you're sitting on capital losses (from shares or crypto that declined in value), realise these losses before 5 April to offset against gains. Losses can be carried forward indefinitely.

Incorporation Timing

If your sole trader business is growing, consider whether incorporating into a limited company would save tax. Generally beneficial when profits exceed £50,000-£70,000, but depends on your circumstances.

Benefits of incorporation: Lower corporation tax rate (25% vs. 40%+ income tax), more tax planning flexibility, dividend tax treatment, better pension contribution options.

Common Mistakes to Avoid

HMRC's Enhanced Compliance Checks

From 2024, digital platforms (like eBay, Vinted, Airbnb) are required to share sellers' income data with HMRC. This means HMRC will know if you're making sales online, and they'll check this against your tax return.

If you're selling on online platforms, ensure you:

• Keep records of all sales
• Understand whether you're trading (taxable) or having a clear-out (not taxable)
• Declare income if your turnover exceeds the £1,000 trading allowance

Penalties and What to Do If You Miss the Deadline

Late Payment Interest and Penalties

In addition to filing penalties, you'll pay interest on late tax payments. The current rate is over 7% per year.

Late payment penalties:

• 30 days late: 5% of the outstanding tax
• 6 months late: Another 5% of the outstanding tax
• 12 months late: Another 5% of the outstanding tax

What to Do If You've Missed the Deadline

If you've already missed the 31 January deadline:

1. File immediately: The penalties continue to increase the longer you wait
2. Pay what you can: Even partial payment reduces the interest charge
3. Set up a payment plan: HMRC offers Time to Pay arrangements (see below)
4. Appeal if you have reasonable excuse: Serious illness, bereavement, or unexpected events may qualify

Payment Options and Managing Your Tax Bill

How to Pay Your Self Assessment Tax Bill

Once you've filed your return, you must pay any tax owed by 31 January 2026. HMRC offers several payment methods:

• Faster Payments online: Using your online banking (same or next day)
• Debit or corporate credit card online: Through your Government Gateway account (immediate)
• Direct Debit: Set up through your online account (allow at least 3 working days)
• Bank transfer: Using HMRC's bank details and your payment reference
• CHAPS: Same-day transfer through your bank (usually a fee applies)
• By cheque through the post: Must allow 3 working days for HMRC to receive and process

Understanding Payments on Account

If your Self Assessment tax bill for 2024/25 exceeds £1,000 (and less than 80% was deducted at source), you'll need to make Payments on Account for 2025/26:

• First payment on account: Due 31 January 2026 (50% of your 2024/25 tax bill)
• Second payment on account: Due 31 July 2026 (the remaining 50%)
• Balancing payment: Any additional tax for 2025/26 due by 31 January 2027

Example: Your 2024/25 tax bill is £10,000. On 31 January 2026, you must pay £10,000 (for 2024/25) PLUS £5,000 (first payment on account for 2025/26) = £15,000 total.

Reducing Payments on Account

If you expect your income to fall in 2025/26, you can apply to reduce your payments on account. Do this through your Government Gateway account or form SA303.

Caution: If you reduce them too much and your tax bill turns out higher, you'll pay interest on the underpayment.

Time to Pay Arrangement

If you can't pay your full tax bill by 31 January, HMRC offers Time to Pay arrangements allowing you to spread payments over up to 12 months.

Eligibility:

• You owe less than £30,000
• Your tax return is up to date
• You don't have other payment plans or outstanding debts with HMRC

How to set up: Use the HMRC online self-serve Time to Pay facility, call the Self Assessment Payment Helpline on 0300 200 3822, or discuss with HMRC before the deadline.

Interest still accrues on the outstanding balance, but you won't face late payment penalties if you stick to the agreed plan.

Budget Payment Plan

HMRC offers Budget Payment Plans where you can make regular weekly or monthly payments towards your next tax bill, even before you've filed your return.

This is an excellent way to spread the cost and avoid a large bill shock in January. Set this up through your online account or by calling HMRC.

Making Tax Digital for Income Tax

From 6 April 2026, sole traders and landlords with qualifying income over £50,000 will be required to keep digital records and submit quarterly updates to HMRC using Making Tax Digital (MTD) compatible software.

This marks a significant change from annual Self Assessment. You'll need to:

• Keep digital records of income and expenses
• Use MTD-compatible software (like Xero, QuickBooks, FreeAgent)
• Submit quarterly summaries (not full tax calculations) to HMRC
• Still submit a final annual declaration

The threshold will gradually reduce, eventually covering anyone in Self Assessment. Now is a good time to start using cloud accounting software if you haven't already.

Getting Professional Help

While this guide is comprehensive, tax affairs can become complex. Consider professional help if:

• Your total income exceeds £100,000
• You have multiple income sources
• You're dealing with complex capital gains
• You have overseas income or assets
• You're considering incorporation or major business changes
• You want to optimise your tax position

A qualified accountant or tax advisor can often save you more in tax than their fees cost. Look for ICAEW, ACCA, or CIOT qualified professionals.

Final Checklist Before Submitting

Useful Resources and Links

Official HMRC Resources

• Self Assessment: Overview - Main HMRC page
• File your Self Assessment tax return online
• Check if you need to send a tax return
• Help and support for Self Assessment
• Self Assessment detailed guidance

HMRC Contact

• Self Assessment Helpline: 0300 200 3310 (Monday to Friday, 8am to 6pm)
• Self Assessment Payment Helpline: 0300 200 3822
• Online services helpdesk: 0300 200 3600
• Welsh language line: 0300 200 1900

Free Tax Tools and Calculators

• MyAccountingTools.co.uk - Free UK tax calculators including Self Assessment, dividend tax, NI, and more
• HMRC's tax calculator

Free Tax Advice Charities

• TaxAid - Free tax advice for people on low incomes
• Low Incomes Tax Reform Group - Guidance and resources

Summary and Key Takeaways

Completing your Self Assessment tax return doesn't have to be overwhelming. The key is to start early, keep good records throughout the year, and methodically work through each section.

Remember these critical points:

1. The deadline is absolute: 31 January 2026 for online returns. File early to avoid the rush and know your tax bill in advance.
2. Keep comprehensive records: For 5 years after the 31 January deadline. Digital records are best.
3. Claim everything you're entitled to: Review the "often missed reliefs" section carefully - these can save thousands.
4. Don't guess: If you're unsure about any aspect, seek professional advice or contact HMRC.
5. Plan for payment: Budget for your tax bill and payments on account. Consider setting up a Budget Payment Plan.
6. Stay compliant with new rules: Prepare for Making Tax Digital if your income exceeds £50,000.

Tax planning is an ongoing process, not just an annual chore. By understanding your obligations and opportunities, you can minimise your tax burden legally while staying fully compliant with HMRC requirements.

This guide was last updated for the 2024/25 tax year. While every effort has been made to ensure accuracy, tax law changes frequently. Always verify current rates and rules on the official HMRC website or consult a qualified tax professional for advice specific to your circumstances.