Who it applies to
Not everyone has to file, and plenty of people file who do not need to
HMRC requires a Self Assessment return from anyone who was self employed as a sole trader and earned more than £1,000 before expenses, anyone who was a partner in a partnership, anyone who owed Capital Gains Tax on something they sold, and anyone liable to the High Income Child Benefit Charge who does not pay it through their tax code.
Beyond that, untaxed income is the usual trigger. Rent from property or land, dividends, savings interest, tips and commission, foreign income and taxable UK income received while living abroad all have to be reported somewhere, and a return is normally where. Some people also file by choice, to prove self employment, to pay voluntary National Insurance or to claim a relief.
If you are not sure, tell us what your income was made up of and we will tell you whether a return is needed. There is no charge for answering that.
Common reasons to file
- Self employed turnover over £1,000
- Rental income above the property allowance
- A partner in a partnership
- Capital gains on a property or shares
- High Income Child Benefit Charge
- Untaxed dividends, interest or foreign income
- A director with income to declare
What you get
Prepared properly, explained, then filed
The return itself
Every page that applies to you, prepared from your records and cross checked against your P60s, P11Ds, CIS statements, dividend vouchers, interest certificates and completion statements.
A review of what you can claim
We go through your costs rather than copying last year. Expenses, capital allowances, pension relief, Gift Aid, the marriage allowance and losses carried forward are all considered before anything is finalised.
Your tax position explained
A plain summary of what you owe, when each amount is due, how payments on account have been worked out and what the figure is likely to be next year.
HMRC correspondence handled
We are registered with HMRC as a tax agent, so we deal with coding notices, statements and queries on the return directly rather than sending you back to the helpline.
Who we act for
Four very different returns, all called the same thing
Sole traders
Turnover and expenses from your books, capital allowances on equipment and vehicles, the trading allowance where it beats claiming costs, Class 4 National Insurance and losses in an early or a poor year. If you are also in the Construction Industry Scheme, your deductions are set against the bill on the same return.
Landlords
Property income and allowable costs, the finance cost restriction that replaced mortgage interest relief with a basic rate credit, the replacement of domestic items relief, rent a room relief, jointly held property split correctly between owners and the position on short lets now the furnished holiday lettings rules have ended.
Freelancers and contractors
Invoiced income, the costs that genuinely relate to the work, use of home, equipment and software, and the interaction with any employment income taxed under PAYE during the same year. Where an engagement has been treated as inside the off payroll rules, the tax already deducted is picked up on the return.
Company directors
A director does not automatically need a return, but one is often required because of dividends, rental income, the child benefit charge or a notice to file. Where it is needed we prepare it alongside the company accounts so the dividend figures agree.
What you can claim
The relief is only worth having if it is claimed
For a trade, the test is whether a cost was incurred wholly and exclusively for the business. That covers office costs and phone, travel including fuel, parking and train fares, stock and raw materials, staff and subcontractor costs, premises costs such as heat, light and business rates, advertising and website costs, bank charges, business insurance, professional subscriptions and work related training.
Where a cost has a private element it is apportioned rather than disallowed. HMRC also publishes flat rates that often beat the effort of working out the real figure. From the 2026 to 2027 tax year the mileage rate for cars and goods vehicles is 55p a mile for the first 10,000 business miles and 25p after that, and 24p a mile for motorcycles. Working from home is £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more.
Reliefs that sit outside the trade matter just as much. Pension contributions, Gift Aid, the marriage allowance, the trading and property allowances, losses and, for landlords, the basic rate credit on finance costs can each move the final figure a long way. Our guide to allowable expenses for sole traders goes through the categories in detail.
Often missed
- Pension contributions made personally
- Gift Aid donations, which extend your basic rate band
- Marriage allowance between spouses
- Capital allowances on equipment and vehicles
- Losses brought forward from an earlier year
- Professional subscriptions and training
- The basic rate credit on landlord finance costs
What we need from you
A short list, and we chase the rest
Income records
Sales invoices or a summary of takings, bank statements for the year, CIS payment and deduction statements, P60 and P45, P11D, dividend vouchers, interest certificates and any foreign income.
Cost records
Purchase invoices and receipts, mileage or vehicle costs, use of home details, loan and finance statements and anything bought for the business that will last, such as tools, equipment or a van.
Property records
Rent received per property, agent statements, mortgage interest, repairs and replacement of furnishings, service charges and ground rent, and completion statements if you bought or sold during the year.
Your HMRC details
Your Unique Taxpayer Reference, National Insurance number and last year's return if we did not prepare it. We will send you an authorisation code to appoint us as your agent.
2025/26 deadlines
The dates that matter for the 2025 to 2026 return
The 2025 to 2026 tax year ran from 6 April 2025 to 5 April 2026. These are the statutory deadlines for that year.
Register with HMRCTell HMRC you need to file, if you have not filed before or did not need to file for 2024 to 2025. Register later and HMRC sets a return deadline three months from the date of its letter, but the payment date does not move.
Paper returnMidnight deadline if you file on paper rather than online.
Collection through your tax codeMidnight deadline to file online and ask for the tax to be collected through your PAYE code, where you are eligible.
Online return and paymentMidnight deadline for the online return, the balancing payment for 2025 to 2026 and the first payment on account for 2026 to 2027.
Second payment on accountThe second instalment towards the 2026 to 2027 bill, where payments on account apply.
PAPayments on account
Advance payments towards next year's bill, in two instalments.
| First instalment | 31 January |
| Second instalment | 31 July |
| Each instalmentNormally half of last year's tax | 50% |
| Not due if last year's tax was under | £1,000 |
| Not due if tax collected at source was over | 80% |
Class 4 National Insurance is included in payments on account. Capital Gains Tax is not. If your income falls you can apply to reduce the instalments, though reducing them too far attracts interest.
LFIf you are late
Filing penalties and payment penalties are separate charges.
| Return one day late | £100 |
| From three months lateCapped at £900 | £10 a day |
| At six monthsWhichever is greater | 5% or £300 |
| At twelve monthsWhichever is greater | 5% or £300 |
| Tax unpaid at 30 days, 6 months and 12 months | 5% each |
| Late payment interest from 9 January 2026 | 7.75% |
Different late submission and late payment penalties apply once you are inside Making Tax Digital for Income Tax, from the tax year you join. Our guide to the 31 January 2027 deadline explains both.
How it works
Three steps, and a draft you sign off
Get set up
A short call to agree the scope and the fixed fee, an engagement letter, then an HMRC authorisation so we can act as your tax agent. We send you a single checklist of what we need, tailored to your income.
Prepared and reviewed
We prepare the return from your records, reconcile it to your bank, apply every expense and relief that fits and query anything that looks wrong. You get a draft with the tax position explained in plain terms.
Filed and diarised
Once you approve it we file online and send you the submission receipt, the amounts due and the dates. We diarise the payment dates and remind you before each one.
Fees
Quoted before we start, and that is the fee
Self Assessment tax returns start from £120. Every return is quoted as a fixed fee before any work begins, and the fee is set out in your engagement letter with the scope it covers. Final fees depend on the complexity of your tax affairs, so if something comes to light that falls outside the scope we tell you what it is and what it would cost before doing it.
If you would rather spread the cost and have the work done through the year instead of in a rush each January, a monthly package includes the return. Sole Trader Essentials is £39 a month and includes bookkeeping software, quarterly reviews, Making Tax Digital updates and the return. The Landlord package is £35 a month and includes the property pages.
Where your situation does not fit a published fee, ask for a quote. We would rather price the actual job than give you a number that changes later.
One off fees
- Employment or simple income only, from £120
- With property or self employment, £249
- Capital gains and the 60 day property report, £299
- Catching up a missed year, from £249 a year
- HMRC compliance check support, from £500
- Included in monthly packages from £35
Questions
Frequently asked
When is the 2025/26 Self Assessment deadline?
The 2025 to 2026 tax year ran from 6 April 2025 to 5 April 2026. A paper return is due by midnight on 31 October 2026 and an online return by midnight on 31 January 2027. Any tax you owe for the year is due on 31 January 2027 as well.
Do I need to file a return if I earned under £1,000?
Trading income of £1,000 or less in a tax year is covered by the trading allowance, and property income of £1,000 or less by the property allowance, so a return is often not needed on that income alone. Other reasons can still bring you into Self Assessment, so it is worth checking rather than assuming.
How much does a Self Assessment return cost?
Self Assessment tax returns start from £120 for employment or other simple income. A return with property or self employment pages is £249, and a capital gains computation with the 60 day property report is £299. Final fees depend on the complexity of your tax affairs and a fixed quote is provided before any work begins. Returns are included in our monthly packages at no extra cost.
Can you file a return for an earlier year?
Yes. We regularly bring people up to date who have several years outstanding. We quote a fixed fee per year, file in date order and deal with HMRC on the penalty position for you.
What if I cannot pay the tax?
File the return anyway, because the penalties for filing late and for paying late are separate charges. Once the return is filed the amount is known and a payment plan can be discussed with HMRC. We help clients set those up.
Will you check it before it is filed?
Always. You get a draft with the figures and the tax explained in plain terms, and nothing goes to HMRC until you have read it and told us to file.
Related
Worth reading next
Self Assessment 2025/26: deadlines, expenses and how to file
The full walk through of the 2025 to 2026 return, from who files to payments on account.
Read moreGuideAllowable expenses for sole traders
Category by category, with the flat rates and the costs HMRC will not accept.
Read moreServiceMTD for Income Tax
Quarterly updates and the final declaration, once Making Tax Digital applies to you.
Read moreGet your return off your list
Book a free 30 minute call. Tell us what your income is made up of and we will tell you what the return involves and what it will cost.
Or just pick up the phone
+44 7456 385980info@taxmesh.co.uk
