COMPLETE GUIDE TO UK TAX RETURNS

Filing UK tax returns is an essential process for those who work, earn additional income or run a business in the UK.

This article is designed to help you understand the key issues, from how to do it to the deadlines and penalties for non compliance.

What is a UK tax return?

A tax return, known as a “Self Assesment”, is a system that allows individuals and businesses to report their income to the government in order to calculate and pay tax. This obligation applies to:

• • • Self employed people.
    • Individuals with additional income (rents, investments, etc).
    • Company directors.
    • Individuals whose income exceeds the threshold of £100,000 per year.

The system is run by HM Revenue & Customs (HRMC), the UK tax office.

Who must file a tax return?

If you receive a salary through the PAYE (Pay As You Earn) system, you probably do not need to file a tax return, as tax is deducted directly from your pay packet. However, you must file a tax return if you:

• • • You are self employed.
    • You generate income from rental property.
    • You earn income from outside the UK.
    • You earn significant profits from investments or dividends.
    • You wish to claim tax relief or adjust payments.

Important deadlines for UK tax returns

Knowing the deadlines is crucial to avoid penalties. The key dates for UK tax returns are:

• • • 5 October. Register on the Self Assessment system if its your first time.
    • 31 October. Deadline for submitting the return in paper format.
    • 31 January. deadline for filing online and paying any tax due for the previous tax year.

The UK tax year starts on 6 April and ends on 5 April of the following year.

How to file a UK tax return

1.Register with HMRC

If this is your first time, you must register on the HMRC website. Once registered, you will receive an activation code to access your online account.

2.Gather the necessary documentation

Essential documents include:

• • • P60 or P45 (summary of income and deductions).
    • Invoices and receipts for self-employed workers.
    • Bank statements.
    • Rental or investment income records.

3.Complete the online form

Log into the HMRC portal, select “Self-Assessment” and complete the SA100 form. This includes:

• • • Personal details.
    • Income earned.
    • Deductible expenses.

4.Calculate your tax

The system will automatically calculate the amount you have to pay after entering your details.

5.Make the payment

You can pay by bank transfer, credit card or direct debit.

Deductions and exemptions

One of the advantages of the UK tax system is the ability to claim deductible expenses. Examples include:

• • • Work related expenses (equipment, uniform, travel).
    • Pension contributions.
    • Donations to charities.

These deductions can significantly reduce your tax burden.

Penalties for non-compliance

If you do not file your return on time, you could face the following penalties:

• • • Initial delay: £100 if you are up to 3 months late.
    • Additional delays:
      • £10 for each additional day (up to a maximum of 90 days).
      • Penalties of 5% of the tax due if the delay exceeds 6 months.

Tips to simplify your UK tax return process

• • • Keep clear records. Organise your income and expenses throughout the year.
    • Use accounting software. Tools such as QuickBooks or Xero can automate much of the work.
    • Consult a professional. If your tax situation is complex, an accountant can help you optimize your taxes.

Conclusion

UK tax filing can seem challenging at first, but with the right information and good organisation, it is a manageable process.

Complying with this obligation not only helps you avoid penalties but also ensures that you pay the right amount.

If you are filing your tax return for the first time, make sure you follow the steps above and consider seeking professional advice to maximise your tax benefits.