Used to report income and file income taxes with tax authorities such as Her Majesty’s Revenue and Customs (HMRC).Tax returns allow taxpayers to calculate their tax liability and remit payments or request refunds, as the case may be. In most countries, tax returns must be filed every year for an individual or business that received income during the year, whether through wages, interest, dividends, capital gains or other profits.
Tax returns for Employees
As an employer, you normally have to operate PAYE as part of your payroll. PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.
You don’t need to register for PAYE if none of your employees are paid £112 or more a week, get expenses and benefits, have another job or get a pension. However, you must keep payroll records.
When paying your employees through payroll you also need to make deductions for PAYE. As an employer, you’ll need to deduct tax and National Insurance for most employees. Other deductions you may need to make include student loan repayments or pension contributions.
All of these deductions need to be reported to the employees on or before each payday. Your payroll software will work out how much tax and National Insurance you owe, including an employer’s National Insurance contribution on each employee’s earnings above £155 a week. Please also note even though most of these things will be covered for your, to do a tax rebate (where HMRC Pays YOU) or for uniform tax rebate (tax rebate on a uniform you wear as part of your work) you will need to claim separately.
Paying the HMRC
You’ll be able to view what you owe HMRC, based on your reports. You then have to pay them, usually every month. However, If you’re a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly contact HMRC’s payment inquiry helpline.
Other things to report
As part of your regular reports, you should tell HMRC when a new employee joins and if an employee’s circumstances change, eg they reach State Pension age or become a director.
You have to run annual reports at the end of the tax year – including telling HMRC about any expenses or benefits.
What is a P35?
The P35 is a tax return form completed by all employers. It represents the total of all deductions made by from the employees’ salaries for to the payments made to HMRC during the tax year. The P35 is completed for each individual tax year and is submitted to HMRC together with the employees P14 (The P14 is a similar form to that of the better know P60).
The deadline for submitting the P35 form online is 19th May after the previous tax year.
Tax Return for Self-Employed
If you are self-employed you will need to fill in a self-assessment tax return, you will be notified by the HMRC in April. The process is done either online or by sending a paper return by post.
HMRC will need the records of your expenses during the tax year, these should include details of all your sales and takings and a record of your purchases and business expenses. You should keep your records for a minimum of six years.
To submit a tax return you will need to register for self-assessment on the HMRC website. You will be provided with 10-digit Unique Taxpayer Reference (UTR) number.
If you prefer to file your SA100 form by paper, then this is an option too. You can download the SA100 form via HMRC’s website, and also some supplementary pages.
In order to do an accurate tax return, you will have to keep all your records. If your return is incomplete and you are then found to owe tax, you may also have to pay interest and a penalty. You can find further information about the records you need to keep on the GOV.UK website
the deadline for online submissions of self-assessment is the 31 January, you can file your tax return anytime between the end of the tax year in April, so if don’t have all the details you will need to submit the tax return, you may provide provisional figures, so you don’t delay filing your tax return. You should mention this in any other information box on a paper return or in the white space on an online return. You should replace any provisional figures with the final ones as soon as you know them.
Finally, if you face any issues doing your tax return online, call up the helpline at 0300 200 3310 experience the operatives are really helpful, and they are very much on your side.