UK Tax Return

Tax Return in the UK is a service addressed to people running their own business or those who are subcontractors for other companies or individuals. In the UK, there are two deadlines for filing your tax return: 31 October for paper and 31 January for online filing. The financial year for all self-employed persons running their own businesses starts on 6 April and ends on 5 April. Then people who decided to send their UK tax return on paper must prepare and submit their tax return so that it is delivered to HMRC by 31 October of the same year. For those who have opted for the online filing, this deadline is extended to the end of January of the following year. As an authorized agent of HMRC, our company prepares and submits tax returns of clients online ensuring that the return is properly prepared and delivered to the tax office on time.

Tax return in the UK is prepared based on the following documents/data:

  • Income invoices
  • CIS reports for subcontractors for whom the tax is paid by the contractor (CIS Statements)
  • Bank Statements
  • Expense invoices (e. g. for telephone, tools, work clothes, fuel, public transport tickets, etc. )

HMRC allows the self-employed to file simplified tax returns in the form of a basic Profit & Loss report without the need to prepare a Balance Sheet.

What does tax return in the UK like?

The purpose of your tax return is to inform the UK tax office (HM Revenue & Customs) of your income and expenses for the tax year so that you can calculate the tax you have to pay or overpaid for the tax year. The result of this tax return is a calculation that tells you whether you need to pay the tax to the tax office, get back any overpaid tax, or whether the tax return is zero (you don’t have to pay anything or have no refund).

The information you provide in your tax return, which includes turnover, business expenses and other capital gains on your assets, allows you to calculate your total income for the tax year. After calculating this amount, it is possible to make a tax calculation and your tax return is complete.

Do I need to file my UK tax return?

Persons employed under an employment contract receive remuneration from employers through the PAYE (Pay As You Earn) system, where tax and insurance premiums are calculated at source and paid directly to HMRC, and the employee receives a net amount to his bank account. In this case there is no need to make a tax settlement – the employer is responsible for the correct calculation and payment of tax.

Anyone who receives remuneration in any form other than PAYE is obliged to settle the tax because their income has not yet been correctly taxed.

In addition, parents who earn more than £50,000 per year and receive Child Benefit are required to file a tax return, as are all PAYE employees earning more than £100,000 per year.