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Income Tax Return Preparation and Advice for the UK.

UK Tax Returns Advice.

A tax return may be sent to you each year by the Inland Revenue. If you are sent one it must be filled in and return by 31st January the following year or penalties and interest may be added. The tax return requests details of all your income for the previous tax year, together with details of certain expenses that can be offset against the income you have received.

You can either calculate the amount of tax that you owe yourself, or the Inland Revenue can calculate it for you, if you submit your tax return to them before 30th September following the end of the tax year. Note that if you choose to submit your tax return online, your tax bill in many cases will be automatically calculated via their online software.

Not everybody receives a tax form to complete. Those people whom the revenue believes are currently paying the correct tax each year eg those on low incomes or PAYE may not receive forms to complete. However, it is your duty to complete a form if you have not payed enough tax, even if the Inland Revenue has not sent you one. If you do not, you may be liable to penalties.

Tax returns are normally sent to people who often receive income untaxed, or have more complicated tax affairs, such as:

  • The self employed
  • Landlords
  • Higher rate tax payers
  • Company Directors

Claiming a Refund

If you need to claim a refund you should contact the Inland Revenue for the correct form.

Completing the Self Assessment Tax Return

The tax return consists of a main form detailing income from investments, pensions etc which everyone must complete. In addition, there are nine supplemental sections that you will have to complete if they apply to you, ie. employment, share schemes, self-employment, partnership, land and property, foreign, trusts etc, capital gains and non-residence etc.

You have a duty to keep records of your income, which you will need in order to complete the return. These records will need to be retained for up to six years, depending on your circumstances.

There are a large number of leaflets available for download in pdf format about completing your income tax return at the Inland Revenue website. They have free leaflets and notes to cover many situations that you may find yourself in. These financial affairs can be complicated, but there is much free advice available.

See also Centrestage Accountants who are a Manchester based firm of chartered accountants offering a range of services.