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It can be daunting having to file a First self assessment tax return for the first time. Read our guide to when you need to do it, the advantages of using an accountant and why submitting your tax return early is beneficial. You must submit a self-assessment tax return if you are self-employed as a sole trader and earned more than £1,000 in the relevant tax year before deducting any tax reliefs. There are other reasons why you might need to file a tax return which are outlined here. If you are required to register for self-assessment with HM Revenue & Customs (HMRC). You must do so before 5th October after the end of the relevant tax year in which you became liable. For example, the deadline for the 2023/24 tax year is 5th October 2024. Your self-assessment tax return must be filed by 31st January in the following year. This is also the deadline for when you need to pay the tax you owe. For example, the deadline for the 2023/24 tax year is 31st January 2025. Is Hiring an Accountant Necessary for Filing Your Tax Return? There’s no legal requirement to hire an accountant to prepare your self-assessment tax return, and it’s entirely possible to do it yourself. However this DIY method can be a bit difficult, especially for those who are doing this for the very first time. It is also possible to be fined when you do it wrong or fail to meet the deadline. By hiring an accountant, you’ll feel confident that everything is being done in a timely manner and that all the required information from the HMRC is provided. The accountant can help you claim all expenses you are entitled to and help you maximise the tax savings you can get. The documents your accountant needs to see Your accountant will require various details to prepare your tax return. Income from self-employment: In the event that you earn kind of trading income you must deliver specifics and receipts of all earnings received and expenses paid. You should also supply copies of bank and credit card statements, including those for the month after the year end in case some payments cleared during the current year. Make sure you keep details of any business miles travelled as an element of motor expenses may be Income from employment: You will need to favor your P60 if you earn income from work. If your employment ended at the end of the year, then you must serve the P45 instead. If you have received any benefits in the form of cash, your accountant will require the P11D. The dividend income: The company must serve the details of any dividends that you have received throughout the during the year. They are typically provided by the business by way of a transfer guidance. Income from rental: As a tenant, you must to help in providing specifics of the rental revenue. Management costs as well as mortgage-related interest. Tax relief is offered on certain costs, including the mortgage’s interest payment. Pension contributions from private sources: Tax relief is accessible for private pension contributions. So it is important to add the details of every pension payouts made throughout the course of the year. Interest from banks: Your tax return must contain details of any interest that you have earned on building society and bank accounts. There is no requirement to declare tax-free items like ISAs. Other earnings or income: This could be from a pension company as well as a different self-employed position or even from the sale of shares, a rental home and so on. Why you should file your tax return early As a business owner you’re faced with enough work to complete and it’s common to delay the tax return filing until the very last minute. There are a lot of advantages to starting it early. Avoid errors The rush to complete your tax return in order in to meet the 31st of January deadline could result in mistakes. Taxes are complicated and you must ensure that you can give suitable time to provide to your tax accountant the complete data they require. Making your tax return late in the last minute may cause you to miss chances to cut down on your tax bill because you are not taking advantage of all tax reliefs. Accountants deal with a third of tax returns for their clients in January. So contacting yours early will make them very happy! Beware of any penalities Every penny counts so don’t leave it so late that you miss the filing deadline. You’ll be hit by an automatic PS100 filing penalty and if your tax return becomes more than three months late. It’s PS10 daily penalties up to a maximum of PS900. A penalty of the higher of PS300 or 5% of your tax due is then charged if your return is six months late and again if it’s over 12 months late. Improve cash flow plan In these economic turmoil, filing your taxes early is extremely beneficial to you control of your cashflow. Knowing precisely how much tax you have to pay in the months of January and June. If you’re paying payment on a credit card this means you are able to determine how you’ll pay the tax. First-time tax return filers may be awed by the requirement to make payments through a bank accounts. By filing early, you’ll ensure you’re able pay the bill or have the time to establish payments with HMRC should you be unable to settle the amount in the full amount. Get tax refunds before the deadline You may be due a tax refund and the sooner you file a tax return, the sooner you’ll receive it. Reasons for tax refunds include excessive payments on account based on the previous year’s income and HMRC making Account-Ease can help you in filling your tax return The best way to ensure your tax return is correct and submitted on time is to use an accountant. 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