Filing your UK tax return is an essential task to ensure you’re fulfilling your financial responsibilities. Whether you’re self-employed, a landlord, or have income from various sources, this guide will walk you through the process of completing your tax return, step by step.

What is a UK Tax Return?

A UK tax return is a form submitted to HM Revenue and Customs (HMRC) to report your income and expenses for the tax year. It calculates how much tax you owe or whether you’re due a refund. Individuals with income from self-employment, rental income, investments, or other untaxed sources must file a return.

When Do You Need to Submit a Tax Return?

You must submit a tax return if:

  • You’re self-employed and earn more than £1,000.
  • You have rental income or income from savings and investments that are not taxed at source.
  • You earn over £100,000 annually.
  • You’re a company director (unless your income is solely through PAYE).
  • HMRC sends you a notice to file a return.

The tax year runs from April 6th to April 5th, with a filing deadline of January 31st following the end of the tax year.

Step-by-Step Guide to Completing Your Tax Return

1. Register with HMRC

If it’s your first time filing, register with HMRC online. You’ll need your National Insurance number and personal/business details. After registration, HMRC will send you a Unique Taxpayer Reference (UTR), necessary for submitting your return.

2. Gather Your Financial Information

Collect the required documents before starting:

  • Income details: Payslips, self-employment earnings, rental income, bank interest.
  • Expenses: Receipts for work-related expenses like office supplies, travel, or rent.
  • Pensions and savings: P60s, P45s, pension information.
  • Charitable donations: Records of any donations made, for claiming Gift Aid.
  • Other income: Additional sources of income, such as from abroad or trusts.

3. Complete the Tax Return Online

Log into the HMRC Self-Assessment Portal and follow the prompts:

  • Income: Report your salary, business earnings, savings interest, or dividends.
  • Allowable expenses: Input expenses related to your work or business.
  • Tax reliefs and allowances: Include any applicable deductions or allowances like Marriage Allowance.
  • Adjustments: Declare any foreign income or pension contributions.

4. Review Your Tax Calculation

After entering your details, HMRC’s system will calculate your tax liability. Double-check everything for accuracy to avoid mistakes that could result in penalties or delays.

5. Submit the Tax Return

Once reviewed, submit your tax return online. HMRC will send a confirmation that your return has been filed. Keep this for your records.

6. Pay Your Tax Bill

If you owe tax, HMRC will send a payment reminder with instructions. Payments can be made via bank transfer, debit card, or direct debit. Ensure payment is made by the January 31st deadline.

7. Keep Your Records

Maintain all supporting documentation for at least 22 months in case HMRC needs to review your return.

Common Mistakes to Avoid

  • Missing deadlines: Late submissions incur penalties.
  • Not declaring all income: Omitting income can lead to fines or legal trouble.
  • Claiming incorrect expenses: Only claim valid business-related expenses.

Filing a UK tax return doesn’t have to be overwhelming. By staying organised and following these steps, you can ensure your tax return is accurate and submitted on time. However, if you’d prefer professional help, consider using an accounting service to handle your tax affairs.

Frequently Asked Questions

  1. How long do I need to keep records of my tax return? You should keep all records for at least 22 months after filing your return in case HMRC requests a review.
  2. What happens if I miss the tax return deadline? Missing the deadline may result in penalties, interest on unpaid tax, or other fines.
  3. Can I claim expenses if I’m self-employed? Yes, you can claim expenses related to your self-employment, such as office supplies, travel, and business equipment.
  4. How can I pay my tax bill? You can pay through your bank, by debit card, or via direct debit. Make sure the payment is made by the January 31st deadline.

Need Help with Your Tax Return?

At Legacy Accounting, we simplify the tax return process. Our expert team ensures accuracy and compliance with HMRC regulations, offering services from just £24.50 per month. Let us manage your tax affairs so you can focus on what matters most.

Get in Touch Today

Let Legacy Accounting handle your tax returns with precision and ease. Contact us today and make tax season stress-free!

References
  1. HMRC: Tax Return Deadlines

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