Below is the tax return process with HM Revenue & Customs (HMRC). This guide will walk you through the annual tax return filing requirements, focusing on specific taxpayer categories and essential deadlines.
HMRC's Annual Tax Return Process
Every year, between April and May, HMRC sends out tax returns by mail or notifies certain taxpayers electronically about the obligation to fill out and submit a tax return.
Who Needs to File a Tax Return?
Most taxpayers in the UK have their taxes deducted at source, meaning their income (like salaries under the Pay As You Earn [PAYE] system) already has taxes withheld. However, if you have income from sources such as rental properties, self-employment, occasional untaxed income (like eBay sales), or other incomes where tax isn't prepaid, you need to declare this.
Specifically, interest earned from savings in bank accounts exceeding the tax-free allowance must be reported in your tax return, with taxes due on the amount over the allowance.
Unsure About Filing?
Visit TaxAid for guidance on whether you need to complete a tax return.
Self-Employed Individuals
If you're registered in the UK as self-employed, you must file an annual tax return with HMRC for the previous tax year.
Tax Return Deadlines
- Paper Returns: Submit by October 31 of the current year (for the previous tax year).
- Online Returns: Submit from April 6 of the current year to January 31 of the following year.
- First-Time Online Filers: Register for Self Assessment tax returns by October 5 of the current year at HMRC Registration.
Penalties for Late Submission
- 3 Months Late: £10 per day penalty (up to £900).
- 6 Months Late: Additional £300 or 5% of the tax due (whichever is higher).
- 12 Months Late: Further £300 or 5% of the tax due, with potential penalties up to 100% of the tax owed.
Learn more about penalties at HMRC Penalties.
Need Help?
For assistance with self-employment and tax return issues, visit HMRC Help.
Conclusion
Filing your tax return in a timely manner is crucial. If you've missed the deadline, pay the fine promptly to avoid additional charges. To pay a late submission fine, visit HMRC Penalty Payment. Remember, staying informed and proactive about your tax obligations is key to avoiding unnecessary penalties.