Self-Assessment Tax Return Guide for Nail Techs: Key Dates, Tips, and Allowable Expenses

At HONA we understand that completing your self assessment for the first time can be a daunting task for any self-employed nail tech! So in this blog we are going to break down all our key tips and tricks to help you complete your tax return with confidence and keep your business running smoothly.

What is a Self-Assessment Tax Return?

So, first things first! What is a Self-Assessment Tax Return? A Self-Assessment Tax Return is a way for the government to collect tax from self-employed individuals, including nail techs. If you are self-employed, you’re required to file this annual tax return to report your earnings and calculate the amount of tax you owe.

Filing your Self Assessment Tax Return is an essential part of managing your business. The deadline for submitting your tax return and paying any owed taxes is January 31st each year. To ensure you're fully prepared, it's important to keep detailed records of your earnings and spending throughout the year. By doing so, you'll have everything you need to accurately file your return and reduce your taxable income by identifying allowable expenses. 

When Is the Self-Assessment Tax Return Due?

The deadlines for submitting your Self-Assessment Tax Return are:

• 31st October : If you are filing a paper return, it must be submitted by midnight on this date.
• 31st January: If you file your return online (which is strongly recommended), the deadline is midnight on 31st January. This is also the deadline for paying any tax owed.

If you don’t meet these deadlines, you may face penalties, so it’s crucial to keep track of dates and file your return on time.

How to Prepare for Your Self-Assessment Tax Return

The key to a smooth Self-Assessment is keeping detailed records throughout the year. As a nail tech, this means tracking everything from the payments you receive for services to any spending on products and supplies. Here are some tips:

1. Keep a Record of Your Earnings and Expenses

• Earnings: Keep a record of all your income from clients, including any cash payments, card payments, and direct transfers. A simple spreadsheet or accounting software can be useful.

• Expenses: Make sure you keep a note of all business-related spending such as the cost of tools, products, training, and marketing. This helps you identify what can be deducted when calculating your taxable profit. More on allowable and non-allowable expenses can be found here: Advice for self assessments 

2. Organise Your Business Finances

Having an organised system is vital. You can use accounting software to help you keep track of your income and expenses, or you can manage it manually with spreadsheets. By separating your business finances from personal finances, you’ll avoid confusion when it comes to completing your tax return.

 3. Allowable & Dis-Allowable Expenses 

When preparing your Self-Assessment, it's essential to understand which expenses you can and cannot deduct. These are categorised as allowable and disallowable expenses. As a nail tech, you can claim expenses that are necessary for your business. 

4. Prepare Your Financial Documents 

To make the process easier, gather all your necessary documents! Organisation is key :

• Income records (bank statements, receipts, invoices)
• Expenses (invoices, receipts, proof of payments)
• Any other relevant documents such as previous tax returns or registration details with HMRC.

Common Pitfalls to Avoid

• Neglecting to keep receipts: Failing to track expenses throughout the year means you might miss valuable deductions, resulting in a higher tax bill. Stay organised by saving all receipts and records of business-related expenses.

• Leaving it to the last minute:  Leaving things to the last minute leaves very little room for error. If you haven't logged in to your HMRC account until last year and forget your password/lock yourself out of your account, you won't have a lot of time to rectify things. Likewise, it leaves you little time for any surprises like missing records or a larger tax bill than you anticipated. 

• Missing the Deadline: Missing the Self-Assessment deadline can lead to costly penalties and interest on overdue payments. Mark the deadline on your calendar to ensure timely submission and avoid unnecessary fees.

• Going It Alone Without Help: If you're unsure about any part of the Self-Assessment process, don't hesitate to seek professional advice. Consulting a tax expert can save you more money in the long run by ensuring everything is done correctly and efficiently.

Conclusion 

Filing your Self-Assessment Tax Return as a nail tech doesn’t have to be overwhelming. By staying organised and keeping accurate records, you’ll be able to file your return with confidence. If you need help or are unsure about certain aspects of the process, consulting a tax professional is a smart move to ensure everything is done correctly.

With the right preparation, you’ll be ready to submit your Self-Assessment and continue running a successful business in the year ahead!