Yes, if you earn income through sponsorships, endorsements, prize winnings, or self-employed work, you must register for Self-Assessment and file a tax return with HMRC. This ensures you declare all taxable income, including payments outside a traditional salary.

You can claim expenses that are wholly and exclusively for your profession. This includes:

• Training costs (e.g., gym fees, coaching)

• Travel and accommodation for competitions or training

• Sporting equipment, kit, and physiotherapy

Income earned overseas is still subject to UK tax if you are a UK resident. You may also need to declare and pay taxes in the country where it was earned, but the UK has double taxation agreements with many countries to avoid being taxed twice. An accountant can help ensure you claim foreign tax credits correctly.

If you are registered to complete a Self Assessment and you miss the 31 January deadline, HMRC issues an automatic £100 penalty. After 3 months, daily penalties may apply, and after 6 months, further fines are charged. It's essential to file on time, even if you cannot pay immediately, to avoid additional penalties.

If you have not registered for Self-Assessment but realise you need to file a return, you can go back up to 4 tax years to declare any undeclared income or correct your tax position. For example, if you realise in the 2024/25 tax year that you should have filed a return for previous years, you can still submit returns going back to 2020/21.

It’s important to act quickly to avoid penalties and interest on unpaid tax. At Practical Business Solutions, we can help you get registered, prepare your returns, and ensure you’re compliant with HMRC requirements. If you’re unsure whether you need to file, contact us today for tailored advice.

You must keep records of all income, expenses, invoices, receipts, contracts, and bank statements. Digital tools like Xero and Hubdoc, which we use, can simplify this. HMRC requires you to keep financial records for at least 5 years after the 31 January submission deadline.

HMRC will randomly audit individuals and businesses to ensure compliance. This is picked totally at random and can happen at any time. This means that a significant amount of time is needed by us to provide the information that they require. But with our insurance policy, our time and subsequent fees are covered, meaning the stress is taken away from you.