UK self-assessed tax-filing simplified
Individuals who have earned income that is not submitted to HMRC, such as income from overseas, rent, or business, usually have to report that income to HMRC in a Self Assessment tax return.
At Tax Quick Refund, we have developed a streamlined tax-filing solution that will help you to be tax-compliant in the UK.
Who must file a UK self-assessed tax return?
There are many reasons why you must file a tax return in the UK, such as:
Are landlords obliged to file an annual UK tax return?
If you’re a landlord in the UK, you fall into the category of taxpayer who is obliged by HMRC to complete an annual self-assessed tax return.
Landlords letting UK property must file an annual tax return by the tax deadline.
At Tax Quick Refund, we file tax returns for thousands of UK landlords every year.
We understand that filing a return can be a complicated and costly business, especially if you have to engage the services of an accountant. We provide a simplified service which is tailored to your individual requirements whether you have UK or foreign property. We will file your UK tax return for a flat fee and provide a transparent, efficient service.
Tax-filing for construction workers in the UK
As a self-employed construction worker in the UK, there is a very strong possibility that you are overpaying tax and are due a tax refund.
At Tax Quick Refund, we have a specialised service for individuals who are working as part of the Construction Industry Scheme (CIS).
The average tax rebate for CIS workers in the UK is £1453 so it’s worth finding out what you’re owed.
We will help you claim your CIS tax rebate as well as relief for any work-related expenses you may be entitled to claim such as tools or machinery costs. We will ensure you avail of every work expense you are entitled to.
UK self assessment FAQs
Self-assessment places the onus on taxpayers to ‘self-assess’ their tax liability. That means that it is the responsibility of the taxpayer to be aware of their obligations and whether they need to file a tax return.
The tax year ends on 5 April. If you are filing on paper you must file before 31 October following the end of the tax year. If you are filing online you must file on or before 31 January following the end of the tax year.
If you do not file your tax return correctly and on time, it’s likely that you will incur fines and penalties from HMRC.
The general rule is that expenses incurred wholly and exclusively for business purposes can be taken as a tax deduction.
For more information you can read our Guide to Allowable Self-employment expenses.
In some cases, i.e. with capital items like plant and machinery, cannot be written off against income in one tax year. The cost is written off over several years. The mechanism for this is Capital Allowances – basically tax approved depreciation.
Yes. If you are in receipt of property income of £10,000 or more (before deducting allowable expenses), you are required by law to file a self-assessed tax return.
Property income is income that comes from a property which is purely owned to generate revenue. Such properties include those which generate rent, such as houses, flats and land.
In other cases, HMRC should make an adjustment to your PAYE code to collect any tax due on such income.
Expenses are only eligible as a tax deduction if those expenses are incurred ‘wholly and exclusively’ for the business of letting. Examples of deductible expenses will include agent fees, wear and tear and commissions. For example, if a tenant breaks a window and you repair that window this is a genuine repair, and the cost can be deducted from rent.
Any water charges or council tax paid by a landlord are deductible expenses, as is any interest paid on a loan taken out to purchase the property in the first place. Insurance premiums are also deductible.
Tax Quick Refund will ensure you avail of every tax expense and deduction that you’re entitled to.
If a landlord is letting out a room to a tenant in their home (i.e. their only or main residence) a special relief is available. However, it’s important to note that the landlord and tenant must be living in the same property.
If the tenant pays the landlord a rent of say, £50 a week, this is strictly chargeable to tax as property income. However, where gross rents are not more than £4,250 a year, rent-a-room relief can apply and the rental income is exempt from tax.
No. CIS is only applicable for self-employed taxpayers. Construction workers and employees are subject to PAYE and National Insurance contributions as per normal.
If you are paid gross then you are highly unlikely to be due a tax refund as tax refunds arise when the tax deducted exceeds the actual tax liability.
To claim a refund, a tax return must be filed with HMRC. Tax Quick Refund offers a free paid estimation service that can advise you of how much tax you may be due back with no obligation to use our service.
Below is a list (not exhaustive) of circumstances which require a taxpayer to file a tax return.
You need to file a UK tax return if:
- you’re self-employed
- you’re a company director, minister, Lloyd’s name or member
- you receive any of the following:
- income from savings and investments of £10,000 or more
- income from untaxed savings and investments of £2,500 or more
- income from property (before deducting allowable expenses) of £10,000 or more
- income from property (after deducting allowable expenses) of £2,500 or more
- annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
- income from the estate of a deceased person on which tax is still due
- you’re in receipt of foreign income that’s liable to UK tax
- you have annual income of £100,000 or more
- you need to claim expenses or professional subscriptions of £2,500 or more
- you need to claim some less common reliefs, such as Enterprise Investment Scheme relief or relief on
Venture Capital Trusts, these can only be claimed by completing a tax return
- Capital Gains Tax is due
- You live or work abroad or aren’t domiciled in the UK
Any balancing payment of tax is due to HMRC by 31 January following the tax year in question.
A sole trader is someone who carries on a business in their own name which is not conducted through a limited company.
If you are a self-employed sole trader you will need to keep all invoices, receipts, bank statements etc to prove the income and expenses declared on your tax return. In general, HMRC advises that you keep sufficient records to support any figures on your return for a minimum of 6 years after it is filed.
As mentioned above HMRC can levy penalties for inadequate record keeping; this is an area of particular interest to HMRC at present and they intend to check 200,000 small business records between 2011 – 2015.
Income received from non-UK properties, will be exempt from UK tax.
If a tenant living in the UK rents a property from a landlord who lives outside the UK, the landlord will still pay UK tax on the rental income even if he / she doesn’t live there because the property is situated in the UK.
Where expenses exceed income, a property business loss will arise. If you have several sources of UK property income, all profits and losses in the year are pooled together for these purposes to give an overall profit or loss for the year. If a taxpayer has a property business loss, that loss can only be carried forward and set against property income from a UK property business in future tax years. It cannot be set against non-rental income nor can it be carried back to a previous year.
You should note that an overseas property loss, (for example, a loss on a villa in Spain or Ireland), cannot be set off against UK property business income. This also applies the other way around so there is never any mixing of UK and overseas property business profits and losses. If you have an overseas property business loss, that loss can only be carried forward and set against future overseas property business income.
CIS is the Construction Industry Scheme, a scheme which obliges contractors to deduct UK tax at source on payments to self employed subcontractors.
CIS covers construction operations carried out in the UK. As a general rule, the scheme includes almost any work that’s done to a:
- permanent building
- temporary structure
- civil engineering work or installation
CIS sole traders can claim a deduction for ANY expense incurred wholly and exclusively for business purposes e.g.:
- Tools
- Travel
- Vans
- Wages
- Materials
- Accountancy fees
- Advertising
- Stationary
- Telephone/internet
- Website
As a self-assessed taxpayer, you must comply with the same rules as other taxpayers and keep records to support all the figures on your return for a minimum of 6 years.
Useful UK tax return facts
- The UK tax year runs from 6 April – 5 April annually
- If you are required to complete a UK tax return this must be filed by 31 October annually (on paper), or by 31 January (online) following the end of the tax year to which the tax return relates
- Self Assessment (SA) was introduced in the 1990s. It puts the onus on taxpayers to “self assess” their tax liability
- Tax Quick Refund can provide you with a free quote to file your UK tax return
- You can be fined by HMRC for missing the filing deadline or submitting an inaccurate tax return