So, How Does Self Assessment Work with HMRC
If you’ve ever asked, how does self assessment work with HMRC, you’re not alone. Every year, millions of people in the UK must report their income through HMRC’s Self Assessment system. Whether you’re self-employed, a landlord, or receive untaxed income, understanding how the process works can save you time, stress, and money.
What Is Self Assessment?
Self Assessment is how individuals report income that hasn’t already been taxed. While most employees have tax deducted automatically through HMRC PAYE, people with other sources of income must declare this themselves. This could include:
- Earnings from self-employment
- Rental income
- Dividend or investment income
- Foreign income
- Side businesses or freelance work
You’ll need to register with HMRC for Self Assessment if you’ve never filed one before. Once registered, HMRC will issue you a Unique Taxpayer Reference (UTR), allowing you to submit your return either online or by paper.
How the Process Works
Understanding the timeline and steps involved is key. Here’s how Self Assessment works:
1. Registering for Self Assessment
You must register by 5 October following the end of the tax year in which you earned the income. This applies to self-employed individuals and those with untaxed income.
2. Filing the Return
You complete the return by entering your income, expenses, and any reliefs. HMRC uses this to calculate how much tax you owe. You can either do this yourself or get account help in Dover if you’re unsure.
3. Paying What You Owe
The deadline for online returns is 31 January each year. You must also pay your bill by this date, which includes any payment on account if applicable.
4. Keeping Records
It’s important to keep accurate records of all income and expenses for at least five years after the 31 January deadline.
Common Issues and Mistakes
While the system is designed to be accessible, many people make avoidable errors:
- Missing deadlines and incurring penalties
- Forgetting to include all sources of income
- Claiming incorrect expenses
- Failing to budget for tax owed
That’s where professional support makes a difference. Our self assessment accountants in Dover ensure every detail is accurate and submitted on time.
Why Choose TRW Accountants?
We specialise in helping individuals and businesses manage their tax responsibilities. If you’re asking, how does self assessment work with HMRC, we break it down in a way that makes sense. Our service includes:
- Registering you with HMRC
- Completing and submitting your return
- Advising on allowable expenses
- Calculating your tax bill
- Handling correspondence with HMRC if needed
Additionally, our team has extensive experience supporting bookkeeping alongside tax returns, giving you a full view of your finances.
We’re also recognised as trusted local accountants in Kent, helping hundreds of clients file with confidence each year.
How TRW Accountants Can Help
At TRW Accountants, we offer clear and practical guidance for anyone needing help with Self Assessment. Whether you’re newly self-employed or dealing with complex income streams, we make the process easy to manage. We’ll ensure you stay compliant, avoid penalties, and understand your financial position.
To speak to a member of our team, contact us today.