Tax filing season doesn’t have to feel like a maze of stress and confusion. Yet, according to a 2023 study by the Federation of Small Businesses (FSB), over 60% of UK business owners admit to making mistakes on their tax returns, often leading to penalties and lost refunds. These slip-ups—like missed deadlines or overlooked deductions—can drain your wallet and peace of mind.But what if avoiding these pitfalls was more straightforward than you thought? With a few innovative strategies and insider tips, you can take control of your tax filing, avoid penalties, and even save money. Ready to make tax season stress-free? Let’s get started!

Common Tax Filing Mistakes and How to Fix Them

Tax errors can lead to costly penalties and unnecessary stress, but they are entirely preventable with the right approach and careful planning. Proactive steps can ensure your tax filing is accurate and compliant, saving time and money.

1. Start with Accurate Record-Keeping

Proper bookkeeping forms the backbone of accurate tax returns.

1.1 Why Accurate Records Matter

Having accurate financial records ensures your HMRC tax return matches reality. Missing receipts or miscategorized expenses can trigger audits or penalties.

1.2 Tips for Better Record-Keeping

• Cloud accounting software like QuickBooks can be used to track income and expenses.
• Save receipts digitally to avoid losing them.
• Schedule quarterly reviews with an accountant for tax return management.

2. Understand Self-Assessment Tax Returns

Self-assessment is how most UK business owners file their taxes, especially if they’re self-employed.

2.1 Who Needs to File?

You must file a self-employed tax return if you’re £1,000 as a sole trader. You must also submit one You’ll if you receive rental income or dividends.

2.2 Common Mistakes in Self-Assessment

• Missing the tax return deadline of 31st January.
• Failing to account for all sources of income.
• Forgetting to deduct eligible expenses.

2.3 Solution: Work with Experts

Collaborating with a self-assessment accountant near me can help ensure your taxes are error-free.

3. Double-Check Tax Deductions

Tax deductions can significantly lower your tax bill, but they’re often overlooked.

3.1 What Can You Claim?

• Office expenses (e.g., utilities, rent).
• Travel costs (e.g., mileage, train tickets).
• Marketing and advertising expenses.

3.2 Stay Compliant

Work with a self-assessment tax return accountant to ensure your claims are legitimate and evidence-supported.

4. File Your Tax Returns Online with HMRC

Filing online is the quickest and most efficient way to submit your self-assessment tax return.

4.1 Benefits of Filing Online

• Immediate confirmation of submission.
• Faster processing of refunds.
• Access to HMRC’s guidance.

4.2 How to File My Tax Return

• Log in to the HMRC portal.
• Enter income and expenses accurately.
• Submit your tax return online before the deadline.

If it feels overwhelming, a self-assessment tax accountant near me can handle it for you.

5. Avoid Late Submissions

Missing the tax return deadline can result in hefty fines.

5.1 Penalties for Late Filing

• £100 for up to three months late.
• Additional charges for longer delays.

5.2 Stay Ahead with Reminders

• Set calendar alerts for key dates.
• Hire an accountant to file tax returns on your behalf.

6. Get Help from Tax Professionals

Managing taxes isn’t something you have to do alone.

6.1 Why Hire an Accountant?

• They can handle complex tax situations.
• Offer personalized tax advisors tailored to your business.
• Ensure compliance with HMRC guidelines.

6.2 Finding the Right Professional Search for tax accountants near me for self-employed individuals. Look for firms with experience in your industry.

Avoid Missing Details on Your Tax Return

Filing a self-assessment tax return requires complete accuracy. HM Revenue & Customs (HMRC) expects you to declare all taxable income, even from less obvious sources. Forgetting to include key details can lead to fines or further scrutiny. Here’s a quick check of income sources to remember when completing your tax return:

• Bank interest (excluding tax-free ISAs).
• Child benefit (if the High Income Child Benefit Charge applies).
• Freelance earnings (even a £100 side gig counts).
• Student loan repayments (if applicable).
• Dividends or investment income.
• Crypto asset sales (including any gains or losses).
• Income from property rentals.
• State pension payments.

It’s important to note that HMRC receives data from third parties, such as banks, platforms like Airbnb, and investment providers. Trying to leave out income isn’t worth the risk, and transparency is key to staying compliant and avoiding penalties.

Real-Life Example: Learn from Mistakes

In 2023, a taxpayer named Mohammad Muhsen Yaqoobi faced a £1,600 penalty for filing his self-assessment tax return 375 days late despite having no tax liability. Yaqoobi appealed, citing unawareness due to living abroad without internet access. However, the First-Tier Tribunal dismissed his appeal, emphasizing that ignorance wasn’t “reasonable ” and that he should “have been aware of his obligations”.

This case underscores the importance of timely and accurate tax filings. Engaging a professional self-assessment accountant can help ensure compliance and prevent costly penalties.

How Quilliam Marr Can Help You!

At Quilliam Marr, we specialize in simplifying tax complexities for businesses and individuals. Our experienced team ensures your tax return is accurate, complete, and submitted on time. Whether you need help with self-assessment, rental income, or investment declarations, we’ve got you covered. Call us at +44 7961 090248 for personalized support, or use our online contact form to request a callback. 

Let Quilliam Marr take the stress out of your tax filing so you can focus on what matters most—growing your business.