Self assessment tax returns can be a nightmare but with the right preparation and understanding of what your accountant needs the process can be much easier. Curve Accountancy based in Crawley offers a streamlined approach to managing your tax return so you stay compliant and efficient. 

This guide will go through what Curve Accountancy needs from clients to ensure a successful self assessment submission.

Key Information You’ll Need to Provide 

To help Curve Accountancy prepare your self assessment tax return properly you need to gather and collate all the financial information. 

Proper preparation saves time and avoids errors that could lead to penalties or delays. Below is a breakdown of what you’ll need to provide with a special focus on sole traders who have different expense categories and record keeping requirements.

1. Personal and Tax Identification Details

Having accurate personal details is fundamental for your self-assessment submission. Ensure you have:

• National Insurance Number: This unique identifier is essential for all tax dealings with HMRC.
• Unique Taxpayer Reference (UTR): A 10-digit number issued when you register for self-assessment. It links your return to your tax account and is crucial for online submissions.
• Contact Information: HMRC and your accountant may need up-to-date contact details for correspondence regarding your return.

2. Comprehensive Income Records

Documenting all income sources is critical to ensure your return is accurate. Sole traders, in particular, should focus on maintaining clear records of their business earnings.

a. Self-Employment or Freelance Income

Sole traders and freelancers must provide:

• Invoices and Receipts: Clear documentation of all work performed and payments received.
• Bank Statements: To verify incoming payments.
• Trading Income Summaries: If using accounting software, export a summary of your trading income.

b. Additional Income Sources

While not specific to sole traders, any additional income must also be reported, such as:

• Employment Income: If applicable, include P60s and P45s.
• Investment Income: Dividend vouchers and bank interest statements.
• Rental Income: For sole traders renting property alongside their business activities.

3. Expense Records for Sole Traders

Tracking deductible business expenses is crucial for reducing taxable income. Below is a detailed breakdown of the most relevant expenses for sole traders:

Operational Expenses

• Materials and Supplies: Essential for providing services or producing goods. For example, a freelance graphic designer might include software licenses and art supplies.
• Small Equipment Purchases: Tools or technology under £100, such as a laptop bag or phone accessories.

Home Office Costs

Many sole traders operate from home. If this applies to you, you can claim a portion of:

• Utilities: Electricity, heating, and broadband costs.
• Rent or Mortgage Interest: Based on the percentage of your home used for business.
• Office Equipment: Desks, chairs, and filing cabinets.

Travel and Vehicle Costs

Travel is often an integral part of a sole trader's business. Ensure you include:

• Mileage: HMRC allows flat-rate mileage claims (currently 45p per mile for the first 10,000 miles).
• Public Transport: Receipts for train, bus, or taxi journeys taken for business.
• Vehicle Running Costs: Fuel, insurance, servicing, and repairs if using your car for business purposes. Sole traders should decide whether the flat-rate mileage or actual costs method is more beneficial.

Professional Costs

• Training Courses: Skills development directly related to your trade, such as an online marketing course for a consultant.
• Professional Memberships: Subscriptions to trade bodies or professional organisations.
• Accountancy Fees: The cost of hiring Curve Accountancy to manage your self-assessment return.

Marketing and Advertising

Marketing is critical for sole traders building their brand. Relevant expenses include:

• Social Media Ads: Costs for promoting services on platforms like Facebook and Instagram.
• Website Costs: Hosting fees, domain renewal, and professional website design or maintenance.
• Printed Materials: Flyers, business cards, and posters.

Insurance

Sole traders may need specialised business insurance, such as:

• Public Liability Insurance: Covers accidental damage or injury caused during your work.
• Professional Indemnity Insurance: Protects against claims of negligence or mistakes.

4. Charitable Contributions

If you’ve made donations under the Gift Aid scheme, ensure you keep records. Charitable contributions can reduce your taxable income.

5. Pension Contributions

Self-employed individuals often pay into private pension schemes. Documenting these payments is crucial to benefit from the tax relief available.

6. HMRC Correspondence

Provide copies of any correspondence from HMRC, especially if you’ve received reminders, notifications about changes in tax codes, or inquiries about previous submissions.

Tips for being Organised 

The Curve Accountancy team always stress the importance of being organised all year round. By following these tips you will save time and reduce stress when tax deadlines hit.

Use Accounting Software: Xero or QuickBooks will make tracking your income and expenses much easier and cleaner. 

Digital Filing System: Scan and store your receipts and invoices so you don’t lose important documents. You can do this inside of platforms like Xero but you can also use something like Google Docs.

Regular Check-ins: Have a monthly review of your financial records to stay on top of income and expenses. 

Tax Deadlines 

Meeting HMRC deadlines is crucial to avoid penalties. Key dates are:

5th October: Register for self assessment if it’s your first time. 

31st October: Paper returns. 

31st January: Online returns and outstanding tax payments. 

We recommend our clients submit their returns as early as possible, ideally by mid December, to make life as smooth as possible.

Why Getting an Accountant for Your Tax Return is a Smart Move

Filing a self-assessment tax return can feel daunting, particularly if you’re juggling multiple income streams or navigating complex expense claims. Here’s why hiring a professional accountant, like Curve Accountancy, is a game-changer:

1. Save Time and Stress

Tax returns demand meticulous attention to detail. An accountant takes this burden off your shoulders, leaving you free to focus on your business or personal priorities.

2. Ensure Accuracy and Compliance

Professional accountants stay up to date with ever-changing tax laws. They know exactly how to prepare and file your return in line with HMRC guidelines, reducing the risk of costly errors or penalties.

3. Maximise Your Deductions

Experienced accountants identify eligible tax deductions you might overlook, ensuring you pay only what you owe—and not a penny more.

4. Tailored Advice and Support

An accountant can provide ongoing advice to help you manage your finances, improve your record-keeping, and even plan for future tax years. This personalized support is invaluable, especially for sole traders and small business owners.

5. Peace of Mind

Perhaps most importantly, working with an accountant means you can rest easy, knowing that your tax return is in safe hands.

Ready to Simplify Your Tax Return? Sign Up with Curve Accountancy Today

If you’re based in Crawley or the surrounding areas, Curve Accountancy is your No.1 choice for handling self-assessment tax returns. With a deep understanding of local businesses and individual needs, we make tax season stress-free and straightforward.

Don’t wait until the last minute to get your finances in order. Contact Curve Accountancy today to schedule a consultation and ensure your self-assessment is accurate, compliant, and tailored to your unique circumstances.

Let Curve Accountancy handle the numbers while you focus on what you do best.