Sole traders are self employed and legally required to submit a tax return each year. The deadline for doing so it January 31st. Naturally, there are some common failings that many self employed individuals fall victim to when completing their return and submitting it to HMRC. Scroll down to discover some of the most common mistakes made on Self Assessment.
1. Entering incorrect figures
2. Not declaring all income/Capital Gains
3. Over claiming on expenses
4. Incorrecte signature & date
5. Entering the wrong National Insurance number and Incorrect Unique Taxpayer Reference (UTR)
6. Not enclosing supplementary information
7. Writing things like: “info to follow” or “as per accounts” instead of writing required figures and facts
8. Ticking the wrong boxes
9. Missing the deadline altogether
10. Improper record-keeping or missing key info
When completing your self assessment, you must remember to include all income received, including any cash or additional earnings you have received throughout the tax year. For a list of claimable expenses view HMRC’s guide on the subject here.
Remember to keep accurate records throughout the tax year, including receipts, invoices, statements and any other supporting documentation which could come in handy when you’re completing your self assessment tax return online. When completing your tax return, give yourself plenty of time and check all figures for accuracy. Mistakes can be costly!