The self-assessment tax return form
This form is sent to all required to complete it just after April 5th each year. (The tax year runs from April 6th to the following April 5th.) The form comes with explanatory notes to help you fill it in properly, and to calculate the tax. There is also a help line to ring if you need help. You can also visit your local tax office for help in filling it in.
Who needs to fill in a tax return?
- The self- employed.
- A partner in a business.
- Someone with income from property.
If you are employed and this is your only source of income and it is less than £30,000 a year, it most likely that you do not need to fill in a tax return form. To confirm however, you can call the Inland Revenue's helpline on 0845 9000 444.
- You must complete the form and send it to your local Inland Revenue office by the 31st January at the latest.
- If you send it in by September 30th, you may request the Inland Revenue to do the calculation for you.
Payment of Tax
- The Inland Revenue send out statements to everybody who owes tax, in January and July each year, showing the amounts due at the end of those months.
- If you are employed, tax will be deducted at source by your employer and accounted for to the Inland Revenue. This is known as the PAYE (Pay As You Earn) system. Many people who only have income as employees do not need to pay any other tax than this — and usually do not need to fill in a tax return.
- The payments on account are estimated by reference to the previous year's tax. Thus, if your tax bill for the 2005/2006 tax year were £1,000, the payments on account for the 2006/2007 tax year would be £500 each.
- Payments on account are a way of making regular payments to the taxman based on the previous years records.
- If you believe that your tax bill for the following year will be less than previously, you may apply to reduce the payments on account.
- When the actual amount due is calculated from your tax return, any balance is then payable by the following 31st January. (Thus, the balancing payment for the 2005/2006 tax year is payable by 31st January 2007).
- If the two payments on account exceed the actual total tax bill as calculated on your tax return, any overpayment will be repaid to you by the Inland Revenue, usually fairly promptly after you have sent in your tax return.
In debt and need help?
Call a CCCS counsellor at 0800 138 1111