If you worked in any of these countries, you could be due a Tax Refund

Key Dates for the UK Tax Year

Get your key tax deadlines and dates for the UK tax year

Working in the UK? Download your free guide to PAYE taxes in the UK here.

 

PAYE Key Tax Dates:

 

6 April 2018

First day of the new tax year 2018/19.

 

5 April 2018

Deadline for claiming your PAYE tax refund for the 2013/14 tax year.

 

31 May 2018

Copies of 2017/18 P60 documents issued to employees.

 

6 July 2018

Copies of 2017/18 P11d documents issued to employees.

 

6 July 2018

Last date for agreeing payment settlements agreements for 2016/17 if applicable.

 

6 April 2019

 End of tax year 2018/19 


Average Rebate £963

Grab My Rebate

Read more about income tax in the UK here.

 

Self-Assessed Key Tax Dates:


31 January 2018

Deadline for 1st payment on account for 2017/18 tax year.

 

5 April 2018

Deadline for claiming tax overpaid for the 2013/14 tax year under self-assessment.

 

6 April 2018

First day of the new tax year 2018/19.

 

6 April 2018

Time to gather detailed documents for your 2017/18 tax return and if you’re self-employed or have income from property in the year ended 5 April 2016.

 

31 May 2018

Last date to give employees a form P60 for 2017/18.

 

31 July 2018

Deadline for 2nd payment on account for tax year ending 5 April 2018.

 

5 October 2018

Deadline to register with the HMRC if you became self-employed or started receiving income from property. You should submit a form CWF1 for self-employment or form SA1 for non-self-employedincome to HMRC.

 

31 October 2018 (midnight)

Deadline for paper self-assessment returns for 2018/19 tax year.

 

30 December 2018

Deadline for online submission of self-assessment tax returns for year ending 5 April 2017 for HMRC to collect tax through PAYE tax codes where they owe less than £3,000.

 

31 January 2019 (midnight) 

Deadline for online self-assessment tax returns for 2017/18 tax year.

 

31 January 2019 (midnight)

Deadline for paying tax bill for tax year ending 5 April 2017/18.

 

5 April 2019

End of tax year 2018/19.

 

Need help filing your UK self-assessed tax return? 

 

The average UK tax rebate is £963

GET YOURS NOW

Read more about self-assessed tax returns in the UK here

 

 

Income tax in the UK

Most workers in the UK pay tax income tax through the PAYE (Pay As You Earn System) system. Your employer uses this to withhold income tax and national insurance contributions from your wages to pay directly to the HMRC (HM Revenue & Customs).


Tax Code

Your tax code is used by your employer to work out how much income tax you need to pay. This tax code changes every year and you may be paying the incorrect amount of tax if you’re on the wrong tax code. You may be able to claim a rebate if you’ve paid too much. You’ll find the code on your payslips. The tax year in the UK is from 6 April to 5 April.

 

Get your Guide to PAYE Taxes in the UK

Download

 

UK Income Tax FAQs

 

Average Rebate £963

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Answers:

Q. How Much Tax Do I Pay?

A. How much income tax you must pay depends on:

  • How much you earn over your Personal Allowance
  • How much of your income falls within each tax band

 

Tax Free Personal Allowance

You don’t need to pay tax on income up to £11,000 as this is the standard Personal Allowance. Your Personal Allowance may be higher if you claim Marriage Allowance or Blind Person’s Allowance or smaller if your income exceeds £100,000.

 

Income tax rates and bands for 2016/17: 

 Band

 Taxable Income

 Tax Rate

 Personal Allowance

 Up to £11,000

 0%

 Basic Rate

 £11,000 to £43,000

 20%

 Higher Rate

 £43,001 – £150,000

 40%

 Additional Rate

 Over £150,000

 45%

*You don’t get a Personal Allowance on income over £122,000.

 

National Insurance Contributions

Your employer will also deduct National insurance contributions, which you will see on your payslip. The amount you pay depends on your employment status and income. As an employee, you pay Class 1 National Insurance contributions.

 

These contributions qualify you for certain benefits including:

  • Basic state pension
  • Additional state pension
  • New state pension
  • Contribution based jobseeker’s allowance
  • Contribution based employment and support allowance
  • Maternity allowance
  • Bereavement benefits

 

Rates for 2016/17:

 Your pay (pw)

 Class 1 National Insurance rate

 £155-£827

 12%

 Over £827

 2%


*You’ll pay less if you’re a married woman or widow with a ‘certificate of election’ or if you’re deferring National Insurance contributions because you have more than one job.


You must tell HMRC if you:

  • Change your personal details (name, address, etc.)
  • Or become self-employed

 

If you become unemployed or can’t work due to illness, you may be able to apply for National Insurance credits to fill any gaps in your contributions.

 

Q. What do those terms on my payslip mean?

 

Your Payslip Explained:

 

Q. Do I need to file a tax return?

A. Most employees in the UK pay tax through their company’s payroll system and are not required to file a tax return.

 

 Reasons you may need to file:

  • You’re self-employed
  • You’re in partnership or a company director
  • You’re a higher rate taxpayer with annual income of £100,000
  • You have investment income of £10,000 or more
  • You have capital gains in excess of the exempt amount
  • You earned foreign income
  • You have rental income
  • You have a tax liability but no PAYE source of income

 

You should tell the HMRC if you think you need to file a tax return, but sometimes HMRC may issue a tax return to fill in based on information from third parties (e.g. employers of expatriates).

If you are unsure whether you should file a tax return or not, you can contact Taxback.com.

 

Q. What if I leave my job?

A. If you leave your job your employer must give you a form called a P45. This is a record of your pay and the tax that has been deducted so far in the tax year.

 

It shows your:

  • Tax code and PAYE (Pay As You Earn) reference number
  • National Insurance number
  • Leaving date
  • Earnings in the tax year
  • How much tax was deducted from your earnings

 

Your employer will submit this information directly to HMRC on the last date that they pay you. This can be also used to find out if you’re due a tax refund. If you don’t get a P60, you should request one from your employer as you may need it to claim back any overpaid tax. It’s also important to have a P45 if you start a new job so you are taxed correctly.

 

Q. If I get married?

A. If you get married, you may want to apply for the Marriage Allowance. This lets you transfer £1,000 of your Personal Allowance to your spouse or civil partner which could reduce their tax by up to £220 each tax year.

You can also backdate your claim to the date of marriage. To be eligible, your partner must earn between £11,001 and £43,000 a year before tax. If you or your partner was born before 6 April 1935, you may benefit more from Married Couple’s Allowance instead.

 

Q. What benefits do I pay tax on?

A. Taxable and Tax Free Benefits:

 

Benefits you pay tax on:

  • State Pension
  • Jobseeker’s Allowance
  • Carer’s allowance
  • Incapacity Benefit
  • Bereavement allowance
  • Widow’s Pension
  • Widowed Parent’s allowance
  • Pension paid Industrial Death Benefit
  • Employment & Support Allowance (contributions based)

 

Tax free state benefits:

  • Working tax credit
  • Child tax credit
  • Housing benefit
  • Guardian’s Allowance
  • Pension credit
  • Winter fuel and bonus scheme
  • Disability Living Allowance
  • Employment and Support Allowance (income related)
  • Maternity Allowance

 

Get your Guide to PAYE Taxes in the UK

Download

Q. How Am I taxed if I live abroad?

A. You may be taxed on your income in the UK and in the country you reside in. However, the country where you’re resident may have a double taxation agreement with the UK and in this case you don’t need to pay twice. 

You can look up countries that have a double taxation agreement with the UK here. Depending on this agreement you can:

  • Get partial or full relief before you’re taxed
  • Apply for a refund after you’ve been taxed

 

Q. Am I due a tax refund?

A. You may be able to claim a tax refund if you:

  • Arrive or leave the UK during the tax year
  • Work less than the full tax year
  • Have been working on a casual basis
  • Had more than one job through the tax year
  • Are a student working in the holidays
  • Sent a tax return and paid too much tax
  • Overpaid tax on pension payments
  • Bought a life annuity
  • Paid on savings interest if you’re on a lower income
  • You live in one country and earn income in another
  • You can find out if you're due tax back for free here.

 

Q. What if I’m a non-resident? 

A. Non-residents only pay tax on their UK income or on UK source personal income, such as interest on UK bank accounts, UK dividends and rental income.

Am I a resident or non-resident?

You will be taxed as a resident if you spend 183 days or more in the UK in a tax year. The Statutory Residence Test can help you determine whether you are resident or not.  Residents normally pay UK tax on all their income, whether it's from the UK or abroad. However, there are special rules for UK residents whose permanent home ('domicile') is abroad.

 

Non-residents don’t usually pay UK tax on:

  • State Pension
  • Interest from UK government securities (‘gilts’)
  • Tax on savings interest is deducted by the bank or building society unless you give them form R105.

 

These factors can also affect your residence status:

  • Whether your home is in the UK or not
  • If you work in the UK or abroad
  • If you have family and other ties in the UK
  • How long you spend in the UK
  • Whether you have been resident in the UK in previous tax years

 

 

The average UK tax rebate is £963

GET YOURS NOW

Self-Assessed tax in the UK 

 

Self-assessed UK tax FAQs:


Answers:

Q. Who needs to file a self-assessed tax return?

A. Self-Assessment is a system used by the HMRC to collect income tax from sources where it hasn’t been automatically deducted, such as self-employment and rental income, etc.

If you need to file a self-assessed tax return, you should submit it at the end of the tax year on 5 April.

 

You should file a tax return if:

  • You were self-employed
  • You are a company director
  • You earn over £50,000 and you or your partner claims Child Benefit
  • You earned over £2,500 in untaxed income such as renting income, investments or savings
  • You had savings and investments exceeding 10,000 before tax
  • Your income exceeded £100,000
  • You lived abroad and had a UK income
  • You had dividends from shares

 

There may be other circumstances where you should file a tax return. Please email info@taxback.com if you are unsure.

Sometimes HMRC may send a letter requesting a tax return and you must submit one, if even you are not required to pay any tax.

How much tax you pay depends on your income tax band. The HMRC will calculate what you owe from the information on your tax return.

 

Q. What If I recently become self-employed?

A. You should register with the HMRC for self-assessment by the 5th October if:

  • You become self-employed
  • You should file a tax return for any other reason

 

Remember that you need to keep records of your expenses, including statements and receipts so you can fill in your tax return.

 

Q. How do I submit my tax return?

A. You can send your tax return to the HMRC online or you can get help from Taxback.com here.  If you owe anything to HMRC, you should pay it by the deadline.

You can file your tax return after the end of the tax year on April 5 and the deadline for submitting your paper return is October 31 or January 31 for online returns. 

 

Q. What happens if I file my tax return late?

A. If you owe money to HMRC and you don’t submit your tax return and pay your bill by the deadline you could get a penalty. You’ll be penalised by £100 if your tax return is up to 3 months late unless you have an acceptable excuse.

 

Q. What allowable expenses can I claim?

A. You can claim an expense if it is ‘wholly and exclusively’’ for the purposes of operating your business.

 

Some common deductions include:

  • Computers used solely for business purposes Bills for a business premises-rent, power, heating costs
  • Motoring expenses such as repairs, servicing, car and van insurance
  • Hotel room costs and subsistence overnight Mileage (unless the self-employment is at the same location for a period of more than 24 months as the cost of travel between your workplace and home is not allowable) Specialist clothing 
  • Phone/broadband expenses 
  • You can read more about self-employed expenses in the UK here.
  • Important: Remember to always keep a record of your expenses. If you need help filing your UK self assessed tax return or want to find out what other deductions you could be eligible for then get help with Taxback.com. 

 

Average Rebate £963

Grab My Rebate

Download your simple guide to PAYE tax in the uk!

 

 

About The Author

Ciara Kennedy - Digital Content Writer @ Taxback.com

Ciara is our Digital Content Writer at Taxback.com. Since graduating in Journalism and Visual media, Ciara has worked in online marketing in Ireland and Australia and loves writing in all its forms.

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