With the Self-Assessment deadline fast approaching, millions of taxpayers are racing to complete their returns and avoid costly penalties. Claire Trott, Head of Advice at St. James’s Place, warns that leaving it to the last minute can lead to overlooked reliefs and unnecessary tax bills. She highlights the key areas – from Gift Aid donations to mileage and work-related expenses – that could help filers keep more of their money.
Claire Trott, Head of Advice at St. James’s Place, comments: “With less than two weeks to go until the Self-Assessment deadline, the pressure is on for millions1 of taxpayers who have yet to file their return. While the tax return process is daunting to many, it’s really important to get started on it as early as possible. Missing the deadline is a costly mistake to make, with HMRC charging £100 to anyone missing the January deadline, and even more as time goes on.
“It’s also important not to complete your tax return too late as filling it out in a rush could result in important details being overlooked, and, ultimately, leave many paying more tax than necessary. For those pulling together their tax return in the final few days, there are a number of details that can easily be overlooked when filing, but which can add up to significant tax relief. Taking the time to include all relevant information is crucial to ensuring taxpayers receive the full relief they are entitled to.
Claire Trott outlines additional areas to consider when filling in a self-assessment tax return:
- Charitable contributions: “If you’re a higher rate taxpayer, Gift Aid payments can reduce your tax bill – but you’ll need to specify them in your form or inform your accountant of anything that qualifies. A lot more is paid under Gift Aid than people realise – including subscriptions to organizations like Scouts, Guides, the National Trust, Wildlife Trust, and English Heritage, as well as entry fees for museums and zoos. Donations made through platforms like Facebook Giving also qualify. Similarly, if you donate goods to charity shops and sign up to Gift Aid, the charity will send you an annual statement detailing your contributions, allowing you to reclaim the associated Gift Aid in your tax return.
“It’s well worth keeping a record throughout the year of any payments that are eligible for Gift Aid, as it can soon add up. For the tax year to April 2024, as much as £1.57bn of tax relief was given to donors, with around £690m paid in higher rate tax relief2.
- Business mileage: “If you travel for business reasons and your employer doesn’t cover the full allowable cost as detailed below, you should claim a mileage allowance on your Self-Assessment return for the difference. If you drive a car or van for work, you can use simplified expenses to claim 45p off your tax bill for every mile travelled up to 10,000 miles. After that, the amount you can claim is reduced to 25p. You need to keep a record of your mileage over the course of the year to claim tax relief on these travel expenses. You can’t claim for travel to and from your work, unless it’s a temporary place of work.
- Business clothing expenses: “While you’re not allowed to claim the contents of your entire work wardrobe as an allowable expense, there are certain items of clothing you can claim to reduce your Self-Assessment tax bill at the end of each financial year. These include work-related uniforms and protective clothing needed for your work, such as overalls or safety boots, that are not provided by your employer. To qualify, they must be necessary, work-specific clothing items.”
1 – According to 5.65 million still to file as the Self Assessment deadline looms – GOV.UK
2 – According to UK charity tax relief statistics commentary – GOV.UK
