Filing taxes can be stressful, especially when trying to meet deadlines and avoid penalties. Many individuals and businesses make mistakes that can lead to delays, fines, or even HMRC investigations. To help you navigate tax season smoothly, here are some of the most common tax filing mistakes to avoid in 2025.
- Missing Deadlines
One of the most frequent errors is missing important tax deadlines. For example, the deadline for online Self-Assessment tax returns for the 2023/24 tax year is 31 January 2025. Late filings incur a £100 penalty, with additional charges for further delays. Mark key dates in your calendar and set reminders to stay on track.
See all the 2025 tax deadlines here.
- Providing Incorrect or Incomplete Information
Errors in your tax return, such as incorrect National Insurance numbers, income figures, or expense claims, can cause processing delays or trigger HMRC reviews. Double-check all information before submitting, and consult a tax professional if needed.
- Failing to Claim Allowable Expenses
Many taxpayers miss out on legitimate expense claims, especially self-employed individuals and small businesses. Ensure you’re claiming allowable expenses such as office supplies, travel costs, and professional fees. However, avoid over-claiming or including non-deductible items, as this can raise red flags with HMRC.
- Forgetting to Report All Income
All income must be declared, including side gigs, rental income, or earnings from abroad. Omitting any source of income, even unintentionally, can lead to penalties and backdated tax liabilities.
- Not Keeping Proper Records
Accurate record-keeping is essential for filing an accurate tax return and substantiating expense claims. HMRC requires you to retain records for at least five years after the tax year ends, so ensure your documentation is organised and complete.
- Ignoring Changes in Tax Regulations
Tax laws and thresholds often change each year. Failing to stay updated can lead to errors, such as using outdated tax rates. Partnering with a chartered accountant can help you stay informed and compliant.
Avoid Mistakes, Save Money
Filing taxes correctly is not only about compliance; it’s about maximising your financial position. By avoiding these common pitfalls and seeking professional advice when needed, you can file your taxes confidently and efficiently this year.
Need help with tax planning? Our team of accountants in Basildon can assist with ensuring your documentation is complete and compliant. Contact us today and let’s make tax season a breeze.