Self Assessment – if you were late – prepare to be ‘judged’.

In 1995, HMRC launched the ‘Hector the Taxman’ campaign to promote early completion of your Self Assessment tax return.

On Saturday afternoon (31st January 2026), HMRC announced that of the 12,000,000 tax returns they were expecting, 2,000,000 were still outstanding.

If Hector was still with us, he would surely wonder why so many are still so late.

But it is probably fair to say, that the people who were late this year, were late last year and the year before that, and on it goes.

Here is the good news.

It really does not have to be this way.
With very little effort you can make Self Assessment and your Tax Return a whole lot easier.
Just follow 4 easy steps.

Find an accountant who wants to help you.

How will you know if you have found the right one?
Simple.
They will have options for the next 3 steps.

Start using one of the many Invoice and Receipt scanning systems that exist.

For example Dext , Auto Entry , Hubdoc or one of the many others that are available.
You might even find that your bank provides one as part of your account.

These products allow you to process invoices and receipts almost as soon as you receive them.
Most systems have two essential features.

• They have mobile apps  that allow you to photograph and file receipts as soon as you get them.
  If the app is really good, it will find most of the relevant information and just ask you to confirm if it is correct.
  Job Done.
• They will provide a unique e-mail address for suppliers to send their invoices or receipts.
  You just need to confirm the system has extracted the correct details.
  You can do this at any time or your accountant can do it for you.
  To make life really easy, why not have the address pre-printed on some cards ready to hand over.

Here is a video showing how FreeAgent does this with their app.

Sign up for electronic banking and provide your accountant with a download of your bank statement.

Don’t worry if you don’t know how to do this. If you have the right accountants they will help you.
With an electronic version of your bank statement, your accountant can start working on your assessment almost straight away.

They will be able to match your invoices and receipts to your bank statement and identify anything you have not provided an invoice or receipt for.

Many modern bank accounts allow you to categorise your transactions and this will help your accountant even further.
You could start with something really simple. e.g., categorise a transaction as business or personal.
Over time you can start to do more detailed analysis.

Some of the receipt systems mentioned above will even scan your bank statements or import them directly from the bank.

Consider a Cloud Accounting system.

There are any number to choose from and if you have the right accountant, they will be able to suggest one.

Many of the Cloud systems are quite straightforward and will suit most small businesses or self employed people.
Some businesses might also be happy for their accountant to do the work for them.

But just keep in mind the following.

• Make sure it does the job you need, not just your accountants.
  If your needs are more complicated, look for a system that has add-ons that meet your needs or look for a more appropriate Cloud system.
• If you are using an invoice or receipt scanning system, make sure it talks to your chosen Cloud Accounting system.

Again, you might find your bank provides something as part of your account. The RBS / NatWest / Ulster Bank Group provide FreeAgent as part of their business account.

So what does this all mean for you.

• You will be filing your invoices etc, as soon as you receive them.
  So no more searching behind cupboards.
  You and your accountant will be able to look at the same information at any time.
• Your accountant will be able to provide you with a range of frankly more useful services, e.g. doing your VAT return or helping to review your business during the year, rather than waiting for the end of the year when the damage has been done.
  Again you will both be looking at the same information
• You might avoid a late filing penalty and also an interest payment.
• It’s really not that expensive

Conclusion

Clearly we can’t guarantee a stress free Self Assessment, after-all you still have to pay the bill.
But we are sure that if you follow our easy steps, it will be a whole lot simpler.

We aren’t accountants, but if you would like to know more about Cloud Accounting or any other IT topic, then Let’s Talk.

Disclaimer: Cartoon tax enforcers aside, this content is for general information only and does not constitute tax or legal advice. Views expressed are personal and not those of HMRC or any other authority.