HM Revenue and Customs (HMRC) uses a Self Assessment system to collect Income Tax. Usually, tax is deducted automatically from wages, pensions and savings. However, for those who don’t pay tax this way or for people who earn extra it is something which must be worked out and submitted.
Who needs to complete a tax return?
According to the HMRC website, you must send a tax return if, in the last tax year (6 April 2017 to 5 April 2018), you were:
- Self-employed as a ‘sole trader’ and earned more than £1,000
- A partner in a business partnership
- You will not usually need to send a return if your only income is from your wages or pension.
But you may need to send one if you have any other untaxed income, such as:
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
There are other reasons for sending a return and these are:
- To claim some Income Tax reliefs
- Prove you’re self-employed, for example, to claim Tax-Free Childcare or Maternity Allowance
When is the deadline for your tax return?
HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the deadline.
However, this deadline can vary for paper and online tax returns.
Deadlines according to HMRC
Register for Self Assessment if you’re self-employed or a sole trader, not self-employed, or registering a partner or partnership 5 October 2018
Paper tax returns Midnight on October 31, 2018
Online tax returns Midnight on January 31, 2019
Pay the tax you owe Midnight on January 31, 2019
HMRC must receive a paper tax return by January 31 if you’re a trustee of a registered pension scheme or a non-resident company. You cannot send a return online.
HMRC might also email or write to you giving you a different deadline.