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Tax Returns in the UK- Here’s all That You Needed to Know

If you are on your first job or a legal immigrant who is new to the state and needs information on tax returns, this is the blog you should be reading. Speaking of tax returns,if you are someone who is new to the country, and lived less than 6 months in the place, there is no need for taxation. The tax cycle in the UK begins from 6th April every year to the 5th April of the succeeding year. If you fall under taxation, here are the things on which you will be paying taxes-

  • Salary
  • Profits earned, in case you are self- employed
  • Some state benefits such as – the state pension, job seeker allowance, careers allowance, Bereavement allowance and numerous others of such kind
  • Rental income
  • Job incremental benefits

Tax exempted components:

  • Interest on your savings under your saving allowance
  • Transactions done through tax-exempt accounts
  • Some state benefits such as- Disability living allowance, child benefit, income support, maternity allowance, etc.

For filing a paper tax return, the last date for submission is 31st October and for an online annual tax return, 31st January is the deadline. A failure to adhere to timelines attract a fine of £100 on the payee. The deduction of the tax is done directly from the salary through the “Pay As You Earn” scheme (PAYE). However, it is your employer, who is responsible to deduct the amount from your salary and send it to Her Majesty’s revenue and customs department. Taxes are to be dealt with great caution, and appropriate calculation is a must for the entire process. For subjects related to tax and finance, it is always smart to rely on safe hands. Penny and Pounds hosts the most trusted and dependable bookkeeping and tax experts in and around Newcastle. Your taxes are dealt with in the best manner by our experts. Reach out to us today!