Submit your tax return on time and claim the tax relief that is rightfully yours

The deadline for submitting your tax return for the 2021-22 tax year is only a few days ahead. You must submit your tax return by 31 January whether you’re a sole trader, in a business partnership, or running a limited company  

However, according to a survey by Consumer Group, Which? nearly five million are yet to file their tax return, and many are in the dark about which expenses and tax reliefs they can claim.  

Rushing the deadline for submitting tax returns might risk missing out on tax perks by hundreds or even thousands of pounds.   

Top Tips for filing your tax return 

File your figures as provisional 

More than 12.1m people were expected to file a self-assessment tax return for the last tax year. A common reason for missing the deadline is waiting for additional figures. However, it will be better for you to submit an estimated figure and file your return on time. Just make sure you tick the box stating that the figures are ‘provisional’. You can update HMRC with the revised number later if necessary. If you file your tax return late, you’ll get a £100 penalty (if it’s up to three months late – it’s more if it’s later).   

Know what you can claim for 

A third of the survey respondents said they were worried about their bill, so self-assessment filers must check what they could claim. Here are some tax perks the survey found commonly ignored by filers, so don’t forget to look into those areas that might help ease your tax burden.   

HM Revenue & Customs allows the self-employed to request claims for a wide range of equipment, such as office supplies, business laptops and computer software. However, the survey shows that 13% mistakenly thought that many types of work equipment could not be claimed as an expense, while another 13% said they did not know.    

The survey also found that the self-employed are at risk of missing out on working-from-home expenses. Based on the number of rooms used for business and the time that space is used for working, HM Revenue & Customs will provide relief to freelancers and entrepreneurs to cover a proportion of the cost of heating, electricity and internet use. For example, a worker could get £35.50 off a £500 electricity bill if they used 10% of their home as an office five days a week.   

In addition, there is separate tax relief for those who were forced to work from home during the lockdown. These workers can claim up to £6 a week, which works out at £1.20 for basic-rate taxpayers (£62.40 a year) and £2.40 (£124.80 a year) for higher-rate taxpayers.     

Amend your tax return after submission 

According to the survey, 42% thought a tax return could not be amended once submitted, which means many people would not return to HMRC to claim an expense they were entitled to. 

If you realise you made a mistake on your tax return, you can correct it for up to a year after the filing deadline via HMRC’s online portal. 

Get extra support if you need it 

GC Business Growth Hub's #HereForBusiness package provides practical guidance and expert advice on a range of topics to help small businesses and SMEs in Greater Manchester manage the increasing cost of doing business. Support is available in various formats, including drop-in clinics, financial resilience seminars, and online workshops.      

To find out more and access help and support get in touch now.