Filing a personal income tax return can be a stressful task for many UK taxpayers, especially when it involves keeping track of multiple income sources, allowable deductions, and changing HMRC rules. A small mistake could lead to unnecessary penalties, delays in processing, or even an audit. For this reason, understanding how to avoid common pitfalls is crucial. More and more individuals are using tools like the Personal Tax Account to manage their tax details securely and efficiently.
But even with this digital resource, the responsibility of entering the right information still lies with the individual. Failing to provide accurate figures or overlooking updates from HMRC can result in serious financial consequences.
This article covers the most frequent mistakes made on personal tax returns in the UK and how to avoid them. Whether you’re a self-employed freelancer, a salaried employee with additional income, or someone with property earnings, this guide will help you navigate the filing process with confidence.
The good news is that with a little preparation and a clearer understanding of the system, you can stay on top of your obligations and avoid costly errors.
Know What Income to Declare
One of the most common issues is failing to declare all taxable income. Many individuals assume that only their salary or pension needs to be reported, but other income sources must also be included, such as:
- Rental property income
- Interest from savings or dividends
- Freelance or side hustle earnings.
- Foreign income (if you’re a UK resident)
Your Peronal Tax Account is a helpful starting point for viewing what income HMRC already knows about, but it’s your responsibility to ensure nothing is missed. Not declaring additional income, even unintentionally, could trigger red flags or penalties. Always double-check your records and, if necessary, consult with a tax adviser who understands the UK tax system thoroughly.
Be Mindful of Allowable Deductions and Reliefs
Another frequent mistake is either forgetting to claim tax relief or claiming too much. Allowable deductions are there to reduce your tax bill, but claiming inaccurately can backfire.
In the UK, you may be eligible to claim tax relief on:
- Work-related expenses
- Charitable donation
- Pension contributions
- Marriage allowance transfers
Use your Personal Tax Account to cross-check which reliefs you’ve already used or submitted. It helps ensure you’re not duplicating claims or missing out on what’s rightfully yours.
Keep all receipts and documentation in case HMRC requests proof. Claiming blindly without records is one of the fastest ways to attract unwanted attention.
Double-Check National Insurance and PAYE Data
Many UK taxpayers assume their employer handles all tax matters correctly through PAYE, but errors do occur. Sometimes income is reported incorrectly, or National Insurance contributions are not properly updated. These issues can lead to underpayments or surprise bills.
Before submitting your return, make sure your employment records, NI contributions, and tax code are correct. You can check this information easily through your Tax Account, which pulls data directly from HMRC’s systems. If something doesn’t add up, for instance, missing employment history or incorrect tax codes, contact HMRC or your employer to have it corrected before final submission.
Don’t Miss the Filing Deadline
Missing the self-assessment tax return deadline is more common than you’d think. In the UK, the paper filing deadline is usually in October, and the online submission deadline is in January.
Failing to meet these deadlines comes with automatic penalties, even if you don’t owe tax. These fines can increase the longer you delay, starting from £100 and increasing over time. To avoid this, mark your calendar and prepare documents well in advance. Your Tax Account will display any upcoming deadlines and outstanding payments, which is a great way to stay organized and avoid last-minute rushes. If you want additional guidance through the process, working with a UK-based tax service like Account Ease can help reduce stress and ensure everything is submitted correctly.
Final Thoughts
Filing your tax return doesn’t have to be overwhelming. With careful attention to income reporting, deductible claims, and official records, you can avoid most of the common mistakes that cause issues with HMRC. Using your Tax Account regularly not only helps you keep track of updates, but it also makes you more aware of your responsibilities and rights as a taxpayer. Combine that with good record-keeping and timely filing, and you’re well on your way to a smooth, penalty-free tax season.
FAQs
1. What is a Personal Tax Account?
A Personal Tax Account is a secure HMRC online service that allows UK taxpayers to manage their tax details, check records, and file returns in one place.
2. What happens if I make a mistake on my tax return?
HMRC may issue fines or request corrections if errors are found. You can usually amend your return within 12 months of the deadline.
3. Can I claim work expenses without receipts?
While some flat-rate expenses don’t require receipts, most allowable expenses must be backed by documentation if HMRC requests proof.
4. Is it better to file online or by paper?
Filing online is generally faster, more secure, and gives you access to your Personal Tax Account data in real time. It also offers a longer deadline.