Get Ready for Your 2024/2025 Self-Assessment
Did you know we can already prepare and calculate your tax liability for 2024/2025? This makes it easier to plan what you will be paying to HMRC in July 2025 as part of the prepayment, and then in January 2026 as the final payment.
We always start with our retainer client self-assessment returns first, but if you are ready to send us your information, please do. We love being prepared and getting the dreaded 'tax' out of the way!
To prepare for your 2024/2025 self-assessment return, here is a list of documents you should gather and send to your accountant:
1. Income Records:
P60 form (end of year certificate from your employer)
P45 form (if you left a job during the tax year)
P11D or P9D forms (details of benefits and expenses)
Self-employment income records (invoices, receipts, bank statements)
Rental income records (tenancy agreements or management agent statements, rent receipts)
Dividend statements/vouchers from investments
Interest statements from savings accounts (ISA interest not required)
CIS Payment advice receipts
2. Expense Records:
Details and Receipts for business expenses i.e. home office, membership subscriptions etc
Mileage logs for business travel
3. Other Income and Gains:
Capital gains records (details of asset sales)
Foreign income information i.e. dividends, rental income, interest income, capital gains made etc
Pension income statements
4. Tax Reliefs and Allowances:
Records of pension contributions made into a private pension scheme
Gift Aid donations made
Records of any other tax-deductible expenses
5. Personal Information and Previous Tax Return –
if this is the first time we are going to submit your self-assessment return:
Unique Taxpayer Reference (UTR) number
National Insurance number
Full name
Date of Birth
Copies of your previous self-assessment tax returns if this is the first time we are doing your self-assessment return.
You can also check your folders/emails for any additional documents that might be relevant, such as:
Bank statements – go through these bank statements and see if anything ‘pops ‘out’
Investment statements
Loan agreements
Importance of Having Your Own Government Gateway Account
Having your own Government Gateway account is crucial for individual taxpayers. This account allows you to access a wide range of HMRC's online services, including your personal tax account.
Here are some things you can do on your Government Gateway account that accountants or tax agents cannot do for you, even though they are registered to deal with your tax affairs:
View and manage your personal tax account: You can see your tax code, check your state pension, and view your National Insurance record.
Update personal details: Change your address, marital status, and other personal information.
Claim tax refunds: If you are due a tax refund, you can claim it directly through your account.
Manage tax credits and benefits: Apply for and manage tax credits and other benefits.
Prepayments to HMRC
Prepayments to HMRC, also known as "payments on account," are advance payments towards your tax bill for the next tax year. If your tax bill was more than £1,000 in the previous year, you usually need to make these payments.
Each payment is typically half of your previous year's tax bill. The first instalment is due on January 31, and the second instalment is due on July 31.
If your prepayments are not enough to cover your tax bill, you will need to make a balancing payment by the next January 31. Insufficient prepayments can result in interest charges on the unpaid tax from the due date until it is paid in full. Additionally, missing the deadline for your balancing payment can lead to penalties, which increase the longer the payment is overdue.
If you do not make enough prepayments, it can affect your PAYE and tax codes, potentially leading to higher tax deductions from your salary to cover the shortfall.
By staying on top of your prepayments and managing your Government Gateway account, you can ensure a smoother self-assessment process and avoid unnecessary penalties and interest charges. Please ask us if you have any questions. It is difficult to understand prepayments and how this affects your PAYE tax codes.