Skip to content

Tax

Self Assessment tax return: a practical guide

Everything a first-time filer needs to know, and a few things experienced filers still get wrong.

28 April 2026 · 8 min read · Bruce Thomas

Person organising documents for a tax return

Self Assessment is the system HMRC uses to collect tax that is not deducted at source. If your income comes only through PAYE with no complications, you probably do not need to file at all.

Who usually needs to file

  • The self-employed and members of partnerships
  • Landlords with property income above the reporting limits
  • Company directors with dividend income to declare
  • People with untaxed income such as investments or foreign income
  • Higher earners affected by the High Income Child Benefit Charge
  • Anyone with capital gains to report

Key dates

The tax year runs to 5 April. Online returns and the balancing payment are due by the following 31 January, with a second payment on account due 31 July. Register by 5 October following the tax year if you are filing for the first time.

Filing early does not mean paying early. Submitting in June still leaves payment due in January — but you know the number seven months ahead.

Payments on account

Where your liability exceeds a modest threshold and most of it is not collected at source, HMRC asks for payments on account towards the next year, each equal to half the current liability.

This is why the first profitable year hurts: January can include the balancing payment plus a first payment on account — effectively one and a half years of tax at once.

What to gather

  • Business income and expense records, or accounts if prepared
  • P60, P45 and P11D from any employment
  • Bank and investment interest, and dividend vouchers
  • Rental income and property expense records
  • Pension contributions and gift aid donations
  • CIS deduction statements if you are a subcontractor
  • Details of any capital disposals during the year

Common mistakes

  • Forgetting the July payment on account
  • Omitting pension contributions and losing higher-rate relief
  • Claiming round-sum amounts with nothing to support them
  • Missing the separate 60-day deadline for residential property gains
  • Leaving it until late January, when there is no time to check anything

Penalties

A late return attracts an immediate fixed penalty, with further penalties as the delay grows, and interest runs on unpaid tax. If you cannot pay, contact HMRC or your accountant early — a time to pay arrangement is far better than silence.

This article is general guidance for business owners in the UK and does not amount to advice for your particular circumstances. Tax rules change and the right answer depends on your figures — please take specific advice before acting.

Keep reading

Related articles

Person checking Self Assessment requirements on a laptop

Tax

Do I need to file a Self Assessment tax return?

Side income, rental profit, dividends or a first year of self-employment — here is how to work out whether HMRC expects a return from you.

11 September 2026 · 6 min read

Read article
HMRC penalty notice on a desk with business paperwork

Tax

HMRC late filing and late payment penalties explained

Penalties escalate quickly and quietly. Here is what each one costs, when interest starts, and what to do if you already have a notice.

7 September 2026 · 6 min read

Read article
Home office desk used for running a small business

Tax

Working from home: what you can actually claim

Two ways to claim, very different amounts, and a couple of pitfalls that catch out directors in particular.

4 September 2026 · 6 min read

Read article

Related services

Services that work alongside this

  • Explore accounting

    A complete accounting relationship: statutory compliance, regular reporting and someone to ring before you make a decision.

  • Explore self assessment tax returns

    Returns prepared and filed for sole traders, directors, landlords and higher earners — early, accurate and with the reliefs claimed.

  • Explore tax planning

    Legitimate, well-documented planning across profit extraction, capital investment, pensions, property and succession.

Related industries

Businesses we work with

  • Accounting for contractors

    Limited company contractors and CIS subcontractors — status, extraction and cash flow handled properly.

  • Accounting for landlords

    Rental accounts, the finance cost restriction, allowable expenses and disposal planning for property investors.

  • Accounting for sole traders

    Simple, affordable support for the self employed — accounts, tax returns and honest advice on going limited.