Top Mistakes to Avoid When Filing Your Personal Tax Return in Manchester

Filing your personal tax return can be a daunting task, especially with the complex regulations and deadlines set by HMRC (Her Majesty's Revenue and Customs) in the UK. Whether you’re self-employed, a contractor, or simply have additional income that needs reporting, ensuring that your tax return is accurate and timely is crucial to avoid unnecessary fines or audits. Manchester residents, like the rest of the UK, must adhere to these regulations, and making mistakes in your submission could result in financial penalties or even legal issues. To help you navigate the process, here are some top mistakes to avoid when filing your personal tax return in Manchester.

1. Missing the Filing Deadline

The deadline for submitting your self-assessment tax return is January 31st each year. Many individuals leave their tax returns until the last minute, which can lead to errors, stress, or missing the deadline altogether. Missing the deadline incurs an automatic penalty of £100, which increases the longer you delay.

Tip: Mark your calendar well in advance and start preparing your documents early. Consider filing online before the rush to avoid any last-minute issues.

2. Failing to Keep Proper Records

HMRC requires you to keep detailed records of your income, expenses, and any other relevant financial documents for at least five years. Many people underestimate the importance of good record-keeping, which can result in under-reporting income or over-claiming expenses.

Tip: Keep organised, digital copies of your receipts, invoices, and bank statements. There are also many apps available that can help streamline this process, making your tax filing easier.

3. Incorrectly Claiming Deductions

One of the most common mistakes is either over-claiming or under-claiming deductions. For example, if you work from home, you may be entitled to claim a portion of your household expenses like utilities, but over-claiming these could trigger an audit. Conversely, you may be missing out on legitimate deductions like professional memberships or travel expenses.

Tip: Make sure you understand what expenses are allowable for your situation. If you’re unsure, consult HMRC’s guidance or seek advice from a local tax advisor in Manchester.

4. Failing to Declare All Income

Any income you earn—whether from employment, freelance work, property rentals, or other sources—needs to be reported on your tax return. Failing to declare all your income is a common mistake and could result in severe penalties from HMRC.

Tip: Ensure you include all forms of income. Keep track of any side businesses, rental properties, or investments that produce taxable income. HMRC receives information from a variety of sources, so it's important to be thorough in your declarations.

5. Not Understanding Your Tax Code

Your tax code determines how much income tax is deducted from your earnings. If your tax code is incorrect, you could either be overpaying or underpaying taxes throughout the year. Many people overlook this and only realise the mistake after filing their return, leading to either a hefty tax bill or a refund.

Tip: Check your tax code on your payslip or online through HMRC’s personal tax account. If you think it’s incorrect, contact HMRC to get it sorted before the tax year ends.

6. Filing a Paper Return Instead of Online

Although you can still submit a paper tax return, HMRC strongly encourages people to file online. Filing on paper increases the chances of errors, and the deadline for paper submissions is October 31st—three months earlier than the online deadline.

Tip: Use HMRC’s online service to file your return. It’s faster, more secure, and helps reduce mistakes by automatically calculating certain sections for you.

7. Forgetting to Pay Your Tax on Time

Filing your tax return is only part of the process. You must also pay any tax owed by the January 31st deadline. Many people assume that submitting the return alone is enough, but late payments will incur interest and potentially additional penalties.

Tip: Make sure you have the funds ready to cover your tax liability. If you think you might have trouble paying, HMRC offers payment plans to help spread the cost.

8. Not Seeking Professional Help

While filing your tax return may seem straightforward, tax rules can be complex, especially if you have multiple income streams, investments, or specific deductions. Many people make mistakes simply because they try to do everything themselves without fully understanding the regulations.

Tip: If your tax situation is complicated, it’s worth consulting with a tax advisor or accountant. In Manchester, there are numerous professionals who can help ensure your tax return is accurate, compliant, and maximises your allowable deductions.

Conclusion

Filing your personal tax return in Manchester can be stressful, but avoiding these common mistakes will help make the process smoother and less risky. Staying organised, understanding what you can and can’t claim, and seeking help when needed are key to ensuring you stay on the right side of HMRC. By taking care with your tax return, you can avoid fines, save money, and reduce your stress.

Remember: Always check the latest tax regulations or speak to a tax professional if you’re unsure about any aspect of your return.