Skip links

Oru Space 7 Throwley Way Sutton SM1 4AF

Speak to us
Expert Accountants

Personal Tax

Self-Assessment

Personal Tax

Personal tax is the process of assessing and managing an individual’s tax obligations on income and assets.

Personal Tax

Personal tax in the UK encompasses income tax, national insurance contributions, capital gains tax, and other levies on an individual’s financial activities. The UK follows a progressive tax system, meaning the tax rate increases with income. Here is a quick overview:

  • Personal Allowance: The first £12,570 of income is tax-free (for 2024/25).
  • Income Tax Rates:
    • Basic Rate (20%): Income from £12,571 to £50,270.
    • Higher Rate (40%): Income from £50,271 to £125,140.
    • Additional Rate (45%): Income over £125,140.

In addition to income tax, you may be liable for:

  • National Insurance Contributions: To fund state benefits like pensions and healthcare.
  • Capital Gains Tax: On profits from selling certain assets.
  • Dividend Tax: On earnings from investments.
  • Inheritance Tax: On estates exceeding the £325,000 threshold.
  • Other Taxes: Such as stamp duty on property.

Understanding these obligations is crucial for effective financial planning and compliance with UK tax laws.

Simple Self-Assessment Tax Return Costs

We offer self-assessment tax return preparation starting from £125 plus VAT. The final fee depends on the complexity of your situation. To provide an accurate quote, please prepare details of all your income sources.

Who Needs to File a Tax Return?

You are required to file a tax return if, during the last tax year (6 April to 5 April), you were:

  • Self-employed as a sole trader earning over £1,000.
  • A partner in a partnership.
  • A minister of religion, trustee, or executor of an estate.
  • Issued a notice to file by HMRC.

You may still need to file if you have other untaxed income, such as:

  • Rental income from property.
  • Savings, investments, or dividends.
  • Foreign income or any income not covered by PAYE.

If your income is solely from PAYE wages or a pension, a tax return is typically not required.

Key Deadlines for Filing a Tax Return

Managing your tax return effectively requires knowing the key dates:

  • Tax Year: Runs from 6 April to 5 April the following year.
  • Inform HMRC: By 5 October if you need to file for the first time.
  • Paper Tax Returns: Deadline is 31 October.
  • Online Tax Returns:
    • 30 December: If you want tax collected via your tax code and owe less than £3,000.
    • 31 January: Final deadline for all online returns.

Late submissions incur penalties, so staying ahead of these dates is essential.

When Is Your Tax Liability Due?

Your self-assessment tax liability (including tax and national insurance) is due by 31 January following the end of the tax year.

  • Payments on Account: Required if your liability exceeds £1,000 and less than 80% is covered by PAYE.
  • Instalments:
    • 31 January: First payment.
    • 31 July: Second payment.

If your income decreases, you can apply to reduce payments on account. Overpayments are refundable.

How to Register for a HMRC Tax Return

Taking the step to become self-employed is exciting! Here is a straightforward guide to register for a tax return:

  1. Confirm Employment Status: Use HMRC’s Employment Status for Tax tool.

        https://www.gov.uk/guidance/check-employment-status-for-tax

  1. Register Online: Go to gov.uk and sign up.

       https://www.gov.uk/self-assessment-tax-returns/registering

  1. Receive UTR: HMRC will send you a 10-digit Unique Taxpayer Reference (UTR) by post.
  2. Create a Government Gateway Account: Using your UTR, set up an online account and provide your business details.

       https://www.access.service.gov.uk/login/signin/creds

  1. Choose a Business Name: Ensure it is not already in use.

This setup gives you access to file returns and make payments efficiently.

Ready to Simplify Your Tax Filing?

We are here to help you navigate your tax obligations effortlessly. Contact us today for professional support with your self-assessment tax return!

Frequently asked Personal Tax questions.

You need to file a tax return if you are self-employed, a partner in a business, earn untaxed income (e.g., rental income or dividends), or if HMRC has requested it.

The personal allowance for the 2024/25 tax year is £12,570, meaning you don’t pay income tax on earnings up to this amount.

  • Paper tax returns: 31 October following the tax year end
  • Online tax returns: 31 January following the tax year end

HMRC issues penalties for late submissions, starting with a £100 fine if you miss the deadline, with further penalties if the delay continues.

If your tax bill is over £1,000 and less than 80% of your tax was deducted at source (e.g., PAYE), you must make payments on account in two instalments (31 January and 31 July).

Yes, allowable business expenses (e.g., travel, office costs, equipment) can be deducted from taxable income to reduce your tax bill.

Using tax-efficient savings (e.g., ISAs), claiming eligible tax reliefs, contributing to pensions, and ensuring all allowable expenses are deducted can help lower your tax bill.