| Is Self-Assessment worth it? (>£2.5k expenses to claim) 10:45 - Mar 29 with 1185 views | Zx1988 |
My employer pays me mileage at 16p per mile and, each April, I claim tax relief on the remaining 29p through HMRC.
This year is the first time that I'm claiming tax relief on more than the £2,500 basic limit, so it's telling me I need to go through Self-Assessment.
I'm at about £3,000, and a higher-rate taxpayer, so SA would net me about £200 extra, compared to just adjusting down to the £2.5k limit and taking an easy life.
Two questions:
1) Is Self-Assessment worth the extra hassle for the sake of £200?
2) If I go through Self-Assessment, will I still have the option to receive a lump sum refund? Or will I just end up with an adjusted tax code and a few extra quid in my take-home each month? |  |
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 11:27 - Mar 29 with 1073 views | sohamblue74 |
Good questions. My opinions briefly as follows. Not professional advice obviously!
1 if the government owe you money, then it is always worth it IMO. Plus if you claim gift aid on charity donations or make payments to a personal pension then both will increase your allowance and reduce your tax.
2 you normally get the choice on the self assessment online form. The default is to adjust tax code and settle the difference over remainder of new/ current tax year. You can request a lump sum instead if preferred. | | | |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 13:19 - Mar 29 with 976 views | Zx1988 |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 11:27 - Mar 29 by sohamblue74 |
Good questions. My opinions briefly as follows. Not professional advice obviously!
1 if the government owe you money, then it is always worth it IMO. Plus if you claim gift aid on charity donations or make payments to a personal pension then both will increase your allowance and reduce your tax.
2 you normally get the choice on the self assessment online form. The default is to adjust tax code and settle the difference over remainder of new/ current tax year. You can request a lump sum instead if preferred. |
Thanks, Soham, that's a great explanation.
Am I correct in thinking that, if I register for Self-Assessment (and remain so registered) I'll have to do SA each and every year, regardless of circumstances, or risk a fine? | |
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 15:41 - Mar 29 with 851 views | TractorWood |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 13:19 - Mar 29 by Zx1988 |
Thanks, Soham, that's a great explanation.
Am I correct in thinking that, if I register for Self-Assessment (and remain so registered) I'll have to do SA each and every year, regardless of circumstances, or risk a fine? |
Basically yeah. However, your 24/25 return ended 05/04/25 is not actually due until 31/01/26.
It's also an opportunity if you are higher rate to put some money into a DC pension scheme and increase your repayment as it is a very efficient thing to do for your tax bill and future. Here is a link that I'm sure explains it simply https://www.ridgefieldconsulting.co.uk/tax-guides/paying-into-pension-fund-is-ta
Once you are in self assessment and perhaps done it once it's pretty straight forward. [Post edited 29 Mar 17:20]
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 15:53 - Mar 29 with 827 views | Deano69 |
Just wondering how 16p a mile was arrived at? Not sure I could run any vehicle for that sort of rate?
Not criticising, just always paid staff the full fixed profit car scheme rate, which even at 45p a mile seemed a little mean these days, as I didn’t think there was much of an alternative. |  |
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 16:01 - Mar 29 with 814 views | Swansea_Blue |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 15:41 - Mar 29 by TractorWood |
Basically yeah. However, your 24/25 return ended 05/04/25 is not actually due until 31/01/26.
It's also an opportunity if you are higher rate to put some money into a DC pension scheme and increase your repayment as it is a very efficient thing to do for your tax bill and future. Here is a link that I'm sure explains it simply https://www.ridgefieldconsulting.co.uk/tax-guides/paying-into-pension-fund-is-ta
Once you are in self assessment and perhaps done it once it's pretty straight forward. [Post edited 29 Mar 17:20]
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For now at least. There are rumblings that Reeves may have to look later in the year at tightening tax rules around pensions. So get in now while you can. |  |
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 16:08 - Mar 29 with 781 views | TractorWood |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 16:01 - Mar 29 by Swansea_Blue |
For now at least. There are rumblings that Reeves may have to look later in the year at tightening tax rules around pensions. So get in now while you can. |
Yep. Perhaps this and next team year left.
She is thinking of smashing cash isas too. | |
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| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 17:19 - Mar 29 with 717 views | mellowblue |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 15:41 - Mar 29 by TractorWood |
Basically yeah. However, your 24/25 return ended 05/04/25 is not actually due until 31/01/26.
It's also an opportunity if you are higher rate to put some money into a DC pension scheme and increase your repayment as it is a very efficient thing to do for your tax bill and future. Here is a link that I'm sure explains it simply https://www.ridgefieldconsulting.co.uk/tax-guides/paying-into-pension-fund-is-ta
Once you are in self assessment and perhaps done it once it's pretty straight forward. [Post edited 29 Mar 17:20]
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Sorry to quibble but 24/25 self assessment returns are due by 31/01/26 surely? | | | |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 17:20 - Mar 29 with 707 views | TractorWood |
| Is Self-Assessment worth it? (>£2.5k expenses to claim) on 17:19 - Mar 29 by mellowblue |
Sorry to quibble but 24/25 self assessment returns are due by 31/01/26 surely? |
Edited. You are of course correct. Fat fingers. | |
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