The ultimate fact sheet on UK tax returns and HMRC

1. You must file a tax return if you derived over £1,000 of any form of sole trader business income, self-employment income, or contracting income. You also need to file a tax return if you have earned income that has not already been taxed in the UK - this includes rental income (including AirBnB), income from savings, investments and dividends, tips and commission, and overseas income. ​

2. You also need to file a self assessment tax return if you were a partner in a business partnership or you earned £100,000 or more.​

3. If you’re an individual and your only source of income is a UK-earned salary or wage, and you earn less than £100,000 a year, you don’t need to file a tax return.  HMRC will contact you directly if they owe you money (or if you owe them!).​

4. The financial year (tax year) in the UK runs from the 6th of April to the following 5th of April.  ​

5. Taxable income and deductions must be reported in pounds sterling.​

6. Late filing of tax returns will result in penalties and late payment of your tax liability will result in interest charges.​

7. Income tax returns are used to calculate the amount of income tax owed for the tax year.  Even if you're filing frequent VAT returns, you still must file an income tax return, as it is a separate tax.​

8. Taxable income includes salary and wages, interest, dividends, business income, and rental income.  ​

9. You can claim a tax credit for tax deducted before it was paid to you - for example, PAYE deductions made by your employer, Withholding Tax (WHT), or if you’re a CIS worker.​

10. You can file your own tax return or work with an accountant.​

11. The deadline for filing your self assessment income tax return on paper is the 31st of October after the end of the tax year. However, if you choose to file it online the deadline is the 31st of January after the end of the tax year.​

12. Your tax liability must also be paid by the 31st of January after the end of the tax year.​

13. Tax returns can be amended up to 12 months from the filing deadline if you find errors or omissions after they've been filed.​

14. Business expenses can be claimed in a tax return against business income as long as they are incurred in the course of your business or trade. You’re not eligible to claim expenses that are for personal use, and if there is an expense that has a personal and business element you will need to split out the business element and claim a deduction for this only.​

1. If your company is trading, you must file a corporate tax return, regardless of whether or not your company made a profit. ​

2. Your tax liability needs to be paid 9 months and 1 day after the end of your accounting period. ​

3. Your tax return is due 12 months after the end of your accounting period. ​

4. Late filing of your company tax return will result in penalties and late payment of your tax liability will result in interest charges.​

5. A company tax return is used to calculate the amount of corporation tax owed for the tax year.  If your company generates a loss during the period the tax return calculates the taxable loss that can be carried forward and offset against future taxable profits, therefore reducing your tax liability in future periods. ​

6. Taxable income includes trading profit, interest income, investment income and income from gains made on the disposal of capital assets. ​

7. Tax credits are sometimes available, for example, if you carry out research & development and hit certain criteria relating to innovation and making advancements in science or technology then tax credits can be claimed. ​

8. You can file your own company tax return, or work with an accountant.​

9. Tax returns can be amended up to 12 months from the filing deadline if you find errors or omissions after they've been filed.​

10. Business expenses (such as home office expenses) can be claimed in a tax return against business income as long as they are incurred wholly and exclusively for the purposes of the trade. ​

HM Revenue & Customs is responsible for collecting taxes from both individuals and businesses, as well as administering tax laws passed down by the UK government. They also manage benefits, tax credits, and other financial support for UK citizens (such as student loans and child support). Understanding how HMRC works is a vital part of submitting a tax return correctly, so here are some key points to keep in mind.​

1. HMRC can open enquiries into tax returns to ensure compliance with tax laws.​

2. HMRC can impose fines and penalties for non-compliance with tax laws.​

3. HMRC provides tax tables and calculators to help calculate the amount of tax owed.​

4. Employers are required to deduct Pay As You Earn (PAYE) tax from employees' salaries and wages and remit it to HMRC.​

5. Businesses must keep records of their income and expenses (e.g., bank statement, receipts, invoices) for at least 7 years as per HMRC’s requirements.​

6. HMRC can negotiate payment plans for taxpayers unable to pay their tax debt in full.​

7. HMRC can issue tax assessments if it finds errors or omissions in tax returns.​

8. Tax refunds can be claimed by filing a tax return or by contacting HMRC.​

9. HMRC offers a range of online tools and resources, including tax calculators, tax guides, and tax information bulletins.​

10. HMRC can offset tax refunds against outstanding tax debts.​

11. Tax returns can be filed using a paper form, through specialist tax return software or through your government gateway account. ​

12. HMRC refunds overpaid tax, including PAYE and VAT. ​

13. Employers must keep records of employees' salaries and wages, PAYE tax deducted, and auto-enrolment contributions for 3 years from the end of the tax year to which they relate.​

14. Professional help from an accountant can minimise the risk of errors and penalties and help ensure compliance with tax laws.​

We understand accounting and tax can be overwhelming - and we are here to take the weight off your shoulders. Beany's team of certified accountants and friendly team can help you manage your tax return. We carefully interpret and apply accounting and tax legislation to enable you to pay the least amount of tax legally possible.​

Our expertise comes without the jargon and is designed to help you save both time and money. To find out more about how we can help get in touch today!​