The type or types of tax returns depends on your circumstances, with the three main types being individual, partnership and corporation tax returns.
Individual tax returns
Tax is usually collected directly from wages, pensions and savings income, however in certain circumstances, individuals must report must report their other income through a tax return.
A tax return is used to record all sources of income earned during a tax year (6 April to 5 April) and the return must be submitted online by 31 January (31 October if done on paper) following the end of the tax year. Penalties are charged if the tax return is not submitted on time and if tax is not paid by the due date.
You must complete a tax return if in the last tax year:
- You were self employed or in a partnership
- You received more than £2,500 or more untaxed income (i.e. from renting out a property)
- Your savings and investment income was more than £10,000 before tax
- You made any profits from the sale of chargeable assets such as a second home or shares
- You were a company director
- Your income or partners income was over £50,000 and one of you claimed Child Benefit
- You received from overseas
- You lived abroad and had UK income
- You received dividends and you were a higher rate taxpayer
- Your income was over £100,000
- You were a trustee of a trust or registered pension scheme
It is also beneficial to complete a tax return if:
- You make donations to charity
- You make private pension contributions and you are a higher rate taxpayer
- You have work expenses that you do not get reimbursed
Your dedicated Brash & Co accountant can assist you by:
- Registering you for self assessment
- Completing your tax return and submitting it to HMRC by the due date
- Calculate tax liability and advise on any payments on account
- Advise on a suitable method of keeping records
- Prepare accounts where necessary i.e. for your sole trader business or rental property
Partnership tax returns
If you run your business as a partnership, you will need to complete a partnership tax return for your business. The partnership tax return will feature the profits of the business and how those profits have been split between each partner.
The partnership return records the results of the partnership accounts during a tax year (6 April to 5 April), and the return must be submitted to HMRC online usually by 31 January (31 October if done on paper) following the end of the tax year.
Each partner must then submit an individual tax return and pay tax on their share of the profits.
If the partnership return is not submitted by the due date, penalties will be charged to each partner until the return is submitted.
Your Brash & Co accountant can help your partnership by:
- Registering your partnership with HMRC
- Completing partnership tax return and submitting to HMRC by relevant due date
- Advise on each partners profit share
- Inform HMRC of any changes to the partnership
- Preparing your partnership accounts
Corporation tax returns
UK limited companies pay corporation tax on their taxable profits and therefore must complete a corporation tax return at the end of each corporation tax accounting period and submit it to HMRC.
Deadlines are usually:
- Payment of corporation tax to HMRC is generally nine months from the end of the accounting period
- Filing the corporation tax return is usually done 12 months from the end of the accounting period
Penalties can be charged if corporation tax is not paid or the corporation tax return is not filed on time.
Your dedicated Brash & Co accountant will be able to assist your limited company by:
- Advising on deadline dates for payment of corporation tax and filing of the corporation tax return
- Calculating the taxable profits and the amount of corporation tax due
- Preparing your corporation tax return and submitting it to HMRC in relevant required format and by the due date
- Compile company financial statements in suitable format for submission to HMRC with corporation tax return