Self-assessment - do it yourself, step by step

Below are two video guides: "How to do your tax return yourself," so that completing it won't cause you any difficulty.

VIDEO 1: How to set up a gov.uk account?

You can set up a Gov.uk account using this link.

Video 2: How to do your self-assessment tax return in England yourself

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VIDEO 3: How to declare cryptocurrency tax in the UK - step by step

This video is for those who have made capital gains from selling cryptoassets (cryptocurrencies). You can do your tax return yourself – this video will help you.

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VIDEO 4: How to declare CIS in the UK - step by step

With this video, you can easily reclaim your CIS tax, saving hundreds of pounds on accounting services.

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Who can do their tax return themselves?

Many people asked why I'm doing this after the first video was published. Access to the guide could be paid, as is often the case. I believe that everyone should know the basics of such formalities – and then not everyone will have to meet with accountants to declare a few thousand pounds from a simple business activity.

Who should seek help with their tax return from a tax advisor?

Self-employed or employed individuals who pay significant taxes year-on-year, who are company directors, receive dividends, and whose business activities are formally complex enough that they feel lost in regulations and obligations, should seek professional advice – this can save them several thousand pounds.

Who needs to file an income tax return in the UK?

• a director of a Ltd company who has income in addition to what is on their payslips (PAYE);
• an individual who has untaxed income, e.g., from bank interest or renting out property in the UK or abroad. Remember that if you are a tax resident in the UK, you must pay taxes here on your worldwide earnings. If your total income is less than £2,500, you may be exempt from needing to file a self-assessment, but you still need to inform HMRC about this income;
• an individual with income from savings or investments exceeding £10,000 gross;
• an individual with employment income over £100,000 – because above this amount, the tax-free allowance (personal allowance) will decrease;
• an individual with income exceeding £50,000 and receiving child benefit;
• an individual with overdue tax to pay and no longer in employment;
• an employed individual who wants to reclaim tax based on allowable expenses exceeding £2,500 (known as claims for expenses).

Who needs to declare Capital Gains Tax (CGT) in the UK?

You must pay Capital Gains Tax if you sell or 'dispose of':

• most personal possessions worth £6,000 or more, excluding your car;
• property that is not your main home;
• a home that is your main residence if you rent it out, use it for business, or if it's very large;
• any shares that are not in ISA or PEP funds;
• business assets.
  

Income Tax and CGT Allowances

Tax-free allowance Capital Gains currently stands at £12,300 (£6,150 for trusts).

The income tax personal allowance (personal allowance) is currently £12,570.

If you buy a house to renovate and sell it for a profit of £12,300, you won't pay any tax, even if you're employed elsewhere and earn £12,570. These are two different types of income, so in this scenario, you would receive a total of £24,870 completely tax-free. 
Self-employed individuals without foreign income can complete their self-assessment in a few minutes. For those earning higher amounts, I recommend contacting a tax advisor – by paying high taxes on larger incomes, you can save a lot this way. And it's completely legal.