TAX RETURN (UNITED KINGDOM)

In the United Kingdom the term 'tax return' is used to refer to the document which must be filed with the HM Revenue & Customs declaring liability for taxation. Different bodies must file different returns with respect to various forms of taxation. The three returns currently in use are:

★ SA100 for Income Tax UK‎

★ CT600 for corporation tax

★ P35 for PAYE deductions by employers

Contents

Income tax self-assessment

Corporation tax self-assessment

PAYE deductions

External links

Income tax self-assessment

Since 1996, a process has been in place whereby an individual paying tax on trading income (e.g. self-employed people) would assess themselves for tax liability, rather than have their local Revenue district office perform the assessment for them. Others who must file a tax return for income tax are those who pay tax at the higher rate (40% for non-savings income and savings income and 32.5% for dividend income). The form currently in use is the SA100 series, complete with additional sheets for particular sources of income. The process must be complete by 31 January following the end of the relevant tax year. Taxpayers may calculate the liability themselves, for which a number of working sheets are supplied by the Revenue, in which case they must file the return by the end of January. Alternatively, they can complete only the details required for assessment, and the Revenue will calculate the liability, however, in this case the return must be filed by 30 September following the end of the relevant tax year.

Corporation tax self-assessment

In addition to income tax, the accountants in a large company may assess their own liability for corporation tax, using form CT600.

PAYE deductions

At the end of the tax year, after 6 April, employers operating PAYE schemes must report to the Revenue their employees, the total that has been paid to them, and the amounts of income tax and national insurance contributions (NICs) that have been deducted from those payments. This is done on form P35.

External links

★ Small Business Accountants' Tax Card

★ Small Business Accountants' Annual Planner