At Hive, we understand that self-assessment tax can be a challenging process for many dental professionals. However, with the proper guidance and a well-prepared checklist, you can navigate this process smoothly. 

In this blog, we will walk you through the basics of self-assessment tax, explain what an HMRC tax return is and highlight upcoming important dates to keep in mind. We will also delve into some of the most commonly forgotten things to look out for when filing your self-assessment tax return.

What is an HMRC tax return?

Her Majesty’s Revenue and Customs (HMRC) is the UK government agency responsible for collecting taxes. A tax return is a document you must submit to HMRC to report your income, gains and other financial information for the tax year. This process is known as self-assessment tax.

You will need to send a self-assessment tax return if you are a self-employed ‘sole trader’, a partner in a business partnership or have a total taxable income of over £100,000. Full eligibility requirements can be found on the HMRC website.  

Upcoming self-assessment dates

It’s crucial to mark your calendar with these key dates to avoid any penalties or late fees:

• 5th October: This is the deadline for registering for self-assessment tax if you are a first-time filer.
• 31st October: If you plan to file a paper tax return, it must reach HMRC by this date.
• 31st January: This is the most critical date. It’s the deadline for submitting your online tax return and paying any taxes you owe for the previous tax year.
• 31st July: Payments on accounts are due to be made by this date.

Now, let’s focus on some of the most commonly overlooked aspects when filing your self-assessment tax return:

1. Record keeping

Before you even start filling out your tax return, you need to have organised records. This includes all your income sources, expenses and relevant supporting documents. Failure to maintain proper records can lead to errors, missed deductions and potentially higher tax bills.

2. Claiming all allowable expenses

Dental professionals often miss out on claiming allowable expenses. These can include professional fees, equipment costs, practice overheads and even mileage expenses for business-related travel. 

Visit our accountancy service page for more information on expenses not claimed by dentists to make sure you take advantage of all the deductions available to you.

3. Pension contributions

Contributions to a pension scheme can have significant tax benefits. Don’t forget to report any pension contributions you’ve made during the tax year, as they may reduce your taxable income.

4. Investment income

If you have investments, such as rental properties or dividends from stocks, you must declare this income in your tax return. Failing to do so may result in penalties and interest charges.

5. Payment on account

Remember that your January tax bill may also include a payment on account for the following tax year. Be prepared for this additional payment, as it can catch some individuals off guard.

6. Student Loan repayments

If you have a student loan, be sure to check whether your income exceeds the threshold for repayments. 

Failure to declare this can lead to underpayments and additional interest charges.

7. Deadlines and penalties

Missing deadlines can lead to automatic penalties and interest charges. It’s essential to submit your tax return on time, even if you’re unable to pay the full amount owed. HMRC may offer payment plans or options to help you manage your tax bill.

Feel like you’re missing something?

Self-assessment tax doesn’t have to be a challenge. With proper preparation, timely submission and attention to detail, you can ensure a smooth process and compliance with HMRC regulations.

Take the worry out of your self-assessment with Hive. Discuss your self-assessment needs with our expert team!