Every year, some people in the United Kingdom are required to Income Tax Return Filing. This is the form used to declare your income and capital gains for the tax year. You can also use the form to claim tax credits and deductions. You can submit the form to HM Revenue Customs (HMRC) on paper or online. Your tax liability is calculated using the information on your tax return. Because you are legally responsible for declaring your taxable income, filing a tax return is known as Self Assessment in the UK. If you file a tax return, it is a return of all of your taxable income for the year, not just the sources about which HMRC already has information from the payer (such as employment income).
Most people in the UK, however, pay all of their tax 'at source,' such as through Pay As You Earn (PAYE) if they are employed, and are thus not required to file a tax return. However, if your tax affairs are complex, you must usually file a formal tax return. Receiving foreign income and gains can make your tax returns complicated.
Is it necessary for me to file a tax return in the UK?
If you only have income from the UK and it is taxed at source, you probably do not need to file a tax return, regardless of your residence or home status. Please keep in mind that all self-employed people in the UK, including those who pay tax at source through the Construction Industry Scheme (CIS), must file a tax return unless their trading income is exempt under the trading allowance.
Foreign income earned as a non-resident is not subject to UK tax and does not need to be reported on UK tax returns. Therefore, having income from abroad will not require the filing of tax, if you are a non-resident. However, non-residents may be required to file a UK tax return for other reasons. If you are a UK resident and have income and profits abroad but could benefit from rules that exclude that income from UK tax if certain conditions are met, you can not need to declare your income.
What should I do?
If you must file a tax return, keep in mind that it is a legal document that must be completed with reasonable care. It is completely acceptable proof of taxable income, and it is critical not to leave out any sources of income, no matter how minor (unless less than pound 1) or whether tax was deducted at source. If HMRC thinks you need to file a self-assessment tax return, they will let you know. However, it is your responsibility to register with HMRC if you earn untaxed income from self-employment or if you are a company director or if you earn income from the rental or sale of property, or if you have any other income that is not taxed at the source.
Let Professionals Handle Your Tax
You have the option of completing your tax return yourself. The problem is that you may not know how to claim all of your expenses or any relief. It is always beneficial to have a clear look at your tax return in case of errors. If you use MSCO Accountants, you will benefit from our expertise and your tax returns will be completed accurately. Plus, you won't have to struggle with your tax returns on your own and spend your precious time doing it. We also provide the best solution for your Vat Tax Return need.
