Confusion about which expenses you can claim, and a lack of knowledge of tax rules means those who pay tax by self-assessment may be paying more than they need to.
In November 2022, we surveyed 881 people who are personally submitting a tax return this year and found that six in 10 don’t know that they can make changes to their tax return after it’s been submitted, while six in 10 wrongly believe that you must show proof for every expense you claim. In fact, you don’t have to show proof in instances where you claim a flat-rate of tax relief.
Three in 10 people who are submitting a tax return told us they were concerned about paying their tax bill this year. But, not knowing the rules on expenses, allowances and tax reliefs could mean that you end up with a tax bill that’s far higher than it needs to be.
Remember, you have until 31 January to submit your tax return online and make a payment. Failure to do so will likely mean you incur late penalties. Those paying late will also be hit with higher interest charges this year.
So, don’t be like the two million people who missed the deadline last year – instead, follow these tips from Which? to help you save money on your tax bill.
1. Don’t forget your expenses
Self-employed business expenses
HMRC allows you to deduct legitimate business expenses from your taxable income. These can include travel and transport, uniforms, office running costs such as stationary or phone bills and the cost of business premises, including energy bills.
If you work from home, you can claim a proportion of your bills for the time you are working and the area of your…
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