November 21, 2025

Preparing for your tax return

Whether you’re a freelancer, a self-employed business owner, or a director of a limited company, tax return season has a way of creeping up on us. One minute it’s summer, the next you’re staring at a looming deadline and wondering where on earth last year’s receipts went. As a Virtual Assistant who supports clients through busy periods, I have seen year after year confusion about logging in, panic about missing figures, last-minute scrambles to find an accountant, and the dreaded realisation that there’s not enough money set aside for the bill.

The good news? A bit of preparation goes a long way. Whether you plan to file your return yourself or hand everything over to an accountant, getting organised early can save time, stress, and in many cases, money. Here are my top tips to help you get ready, keep calm, and confidently tackle your next tax return.

1. Make Sure You Can Log In — Before You Need To

This sounds simple, but it’s astonishing how many people only check their HMRC login credentials on the deadline day. Unfortunately, that’s also the day HMRC is busiest and the day you’re most likely to be locked out, waiting on security codes, or stuck on hold because your password doesn’t work.

Do this now, even if you’re not ready to file:

  • Log in to your HMRC online account and make sure your Government Gateway ID and password still work.
  • Check that your contact details, especially your email address and mobile number are up to date so you can receive security codes.
  • Ensure you have access to any authenticator apps or devices you’ve used in the past.
  • If you’ve had problems logging in before, consider downloading or printing backup recovery codes.

A five-minute check now can save hours of frustration later. Think of it like testing your smoke alarm!

2. Decide Early: Will You Use an Accountant?

Not everyone has an accountant, but the right one can take a lot of stress off your shoulders. They can also help you identify allowable expenses you might miss, ensure everything is correct, and potentially save you money.

If you already have an accountant, get in touch early. Most are extremely busy from December to January, and the later you leave it, the fewer slots they’ll have. If you haven’t got one yet, now is the perfect time to start looking.

If You’re Searching for an Accountant:

  • Do your research — Look for someone who specialises in your type of work or business. A creative freelancer has different needs to a construction subcontractor or a limited company director.
  • Check reviews and recommendations — Personal referrals from people in your industry are especially useful.
  • Ask about fees upfront — Some charge a fixed rate for tax returns; others bill hourly.
  • Confirm deadlines and expectations — Accountants often have their own cut-off dates for receiving documents. Miss these, and they may not be able to file for you in time.

Choosing an accountant isn’t something to rush. Give yourself enough time to compare options and feel confident in your decision.

3. If You’re Filing It Yourself: Gather Everything You Need

Many people choose to file their own tax return, and that’s absolutely fine but accuracy is essential. HMRC expect you to declare all taxable income and keep proper records. Before you start, make sure you have access to everything you need.

Key Questions to Ask Yourself:

  • Do you have access to all your bank accounts?
    This includes personal accounts if you’ve used them for business transactions. You’ll need to ensure you have a clear picture of income and expenses.
  • Do you know all your sources of income?
    Income isn’t just money paid by clients or customers. It can include:
    • Trading income
    • Interest from savings
    • Dividends
    • Rental income
    • Grants
    • Foreign income
    • Benefits in kind
  • Do you have a complete record of your expenses?
    Allowable expenses vary depending on your work, but examples include:
    • Software and tools
    • Professional memberships
    • Office costs
    • Travel
    • Training courses
    • Marketing and advertising
  • Have you kept mileage logs or home-office calculations?
    These are often forgotten. HMRC allow certain flat-rate calculations if you work from home or use your personal vehicle for business, but you’ll still need records to back up your claims.

4. Keep Your Records in One Place

The easiest way to reduce admin stress is to avoid the annual paper chase altogether. If you find yourself fishing for scraps of paper, email confirmations, and odd screenshots every year, then it’s time to streamline your system.

Simple ways to stay organised:

  • Use cloud folders (Google Drive, OneDrive, Dropbox) with subfolders for income, expenses, invoices, receipts and bank statements.
  • Use accounting software like Xero, QuickBooks, FreeAgent or a simple spreadsheet if you prefer.
  • Forward email receipts into a dedicated bookkeeping folder.
  • Keep digital copies of everything

A tidy digital system means your tax return almost builds itself.

5. Understand What You Owe and Put Money Aside

One of the most stressful parts of tax return season is discovering how much you owe and realising you haven’t set enough money aside.

For self-employed workers and small business owners, tax usually includes:

  • Income Tax
  • Class 2 National Insurance (if applicable)
  • Class 4 National Insurance
  • Payments on account (if your tax bill is over £1,000)

Payments on account often catch people by surprise. They mean that in addition to paying the tax you owe for last year, you may also need to pay half towards next year’s bill. This can make the amount due feel significantly higher.

To avoid nasty surprises:

  • Regularly estimate your tax liability using a calculator or accounting software.
  • Put aside a percentage of each payment you receive many people find 20–30% works well, depending on income.
  • Keep your tax savings in a separate bank account so you’re not tempted to spend them.

The earlier you build this habit, the easier life becomes. Your future self will thank you.

6. Double-Check Key Documents

As the deadline gets closer, you’ll want to ensure you have all the necessary documents ready.

Depending on your situation, this may include:

  • P60 or P45 forms
  • Bank interest statements
  • Dividend vouchers
  • Pension contribution records
  • Rental accounts if you’re a landlord

If you’re self-employed or running a business, then you’ll also need:

  • Income and expense records
  • Invoices issued and received
  • Bank statements
  • Any loan or finance documents
  • Details of assets purchased for the business

Take time to cross-check everything. A quick review now avoids corrections later.

7. Start Early

You don’t need to submit your tax return the same day you start it. Even opening the form and entering some basic information can help you understand what documents you’re missing.

HMRC allows you to save progress and come back later.

Beginning early means:

  • You have time to ask for missing statements from your bank.
  • You can chase clients for remittances or invoices.
  • You can check figures with your accountant if needed.
  • You avoid the panic that comes with doing everything at the last minute.

Even an hour of prep today can save you several hours later on.

8. Don’t Ignore Letters or Notifications

If HMRC contact you, don’t ignore the correspondence. Letters can relate to deadlines, outstanding amounts, overpayments, or verification requests. Leaving them unopened can lead to avoidable penalties.

Similarly, keep an eye on your email for HMRC alerts but be vigilant about scams. HMRC will never ask for your bank details via email or text message. If in doubt, always log in to your online HMRC account to verify messages.

9. Ask for Help When You Need It

Filing a tax return can feel overwhelming, particularly if it’s your first time or if your financial situation has changed. There’s no shame in asking for help.

Here are some options:

  • HMRC helpline — They can clarify general questions (although wait times can be long, I have foudn that they answer quicker at 8am).
  • An accountant or bookkeeper — Even hiring someone for an hour can make a huge difference.
  • A virtual assistant — We can help with organising records, gathering documents, setting up systems, and preparing spreadsheets.

Trying to figure everything out alone often takes longer and leads to more mistakes. Help is available and often more affordable than you think.

10. Start Thinking Ahead for Next Year

Once your tax return is submitted, don’t just breathe a sigh of relief and move on. This is the perfect time to put better systems in place for next year.

Consider:

  • Updating your bookkeeping regularly — weekly or monthly is ideal.
  • Setting aside tax money automatically as you earn.
  • Using accounting software to simplify the process.
  • Keeping digital copies of receipts as you go.
  • Scheduling reminders to check your HMRC login twice a year.

A little bit of consistency across the year can turn tax season from a dreaded event into a quick administrative task.

Filing a tax return doesn’t have to be stressful. With early preparation, organised records, and the right support, the process becomes far more manageable. Whether you choose to tackle it yourself or work with an accountant, give yourself plenty of time to gather everything you need, check your figures, and make sure you have the funds set aside for your tax bill.

Tax season may come around every year, but it never needs to feel like a surprise. A bit of organisation now can save a huge amount of trouble later and your future self will thank you for taking control of the process.

If you’d like help organising your paperwork for your tax return or simply keeping on top of your admin throughout the year, I’d be happy to support you. Just get in touch.