Self Assessment: what you need to do right now

Updated
a woman with unpaid bills has...
a woman with unpaid bills has...



Not filed your tax return yet? The deadline for sending in a paper self assessment tax return by post has already passed, but you have until January 31 to file an online return, and make your first payment for the 2014/2015 tax year -

That doesn't mean you can forget about it for another few weeks, though. Last year, almost a million taxpayers left it until January 30 or 31 to file their tax returns.

But beware: if you have never filed an online return before, you need to register on the HMRC website and apply for an activation code that can take up to 10 working days (more for those based overseas) to arrive.

And even if you already have a login, it's worth leaving yourself some leeway in case you can't find an important document, or it takes longer than you expect to transfer the money.

As we count down the days to January 31, here's a step-by-step list of what you need to do to avoid picking up a penalty at the end of the month.

1. Register with HMRC
If you have never filed an online return before, register on the HMRC website NOW and wait for your activation code to arrive in the post.

You will need your "Unique Taxpayer Reference" number (found on letters from HMRC) and either your National Insurance number or your postcode to register.

2. Calculate your earnings
Use your records and bank statements to add up all your earnings. These may include rental income and interest on savings accounts, as well as any money you were paid by clients.

If you have made a gain on the sale of some land or shares, for example, you may also have to pay Capital Gains Tax on that amount.

3. Work out your taxable income
Then add up the expenditure you can offset against your income. If, for example, you use a letting agent to manage a rental property, you can offset this against the amount you have received in rent.

The difference between the two amounts is your taxable income. Just make sure you keep the receipts to back up your claims, just in case you are the subject of an HMRC investigation.

4. Fill in your return online
Log in and complete your 2014/2015 tax return, using the use the notes and help sheets provided by HMRC.

Remember to sign and date it, and to include all the necessary information. Being able to refer back to your return for 2013/2014 may make filling in this year's return easier.

For further help, you can also contact the HMRC helpline on 0300 200 3310. It is open 8am to 8pm on weekdays and 8am to 4pm on Saturdays.

5. Make the first payment
Print off a copy of your completed return and tax calculation for your records. Then pay the amount indicated for the first payment.

As the deadline for this is January 31, and you will be penalised if you miss the payment date, it makes sense to make the payment at least a few days before the end of the month.

Smart Ways to Use Your Tax Return
Smart Ways to Use Your Tax Return

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