We can prepare your personal tax returns, required to declare your personal income (salary and dividends) for the year to HMRC on an annual basis. No matter whether you are a sole trader or partnership, we can help with preparing your accounts. We offer a flexible service to meet each individual's needs, whether that be working on your accounting system or with spreadsheets and bank statements.

What records do I need to keep?

You are required by law to keep correct records to enable you to fill in a tax return. These include:

  • income and sales generated by your business
  • the costs of running your business – your expenses
  • PAYE records – if you employ anyone
  • VAT records – if you are VAT registered
  • details of your personal income

You must keep your records for at least 5 years after the deadline for the relevant year. This includes proof such as receipts, bank statements and invoices.


What if I need help filing my tax return?

HMRC offer a series of webinars and videos that provide self-help advice on everything from understanding why you have been sent a tax return to appealing against late fine penalties.

Alternatively, an accountant or tax adviser will be able to take care of the entire process from start to finish or help with aspects of the Self Assessment process that you are unsure of.

What happens if I get things wrong?

Minor errors can often be put right by an exchange of emails or a phone call, more serious errors that result in significant under-declared income can be considered grounds for opening an enquiry. If any errors are down to fraud or negligence, you may be liable to a penalty and have to pay interest on any underpaid tax.

HMRC defines four types of errors with penalties ranging from 0% to 100% of the underpaid tax.

  • Where reasonable care has been taken but later find that an error has been made and report to HMRC, no  penalty is applied.
  • Where there has been an error due to carelessness, a penalty of 0% – 30% applies. Following prompting from HMRC, a minimum of 15% applies.
  • Where there has been a deliberate misstatement 20% – 70%, rising to a 35% minimum following  prompting.
  • Where a deliberate misstatement has been made which is then concealed, the penalty is between  30% –100% rising to a 70% minimum following prompting from HMRC.

The penalties are designed to deter anyone from making deliberately inaccurate statements and are especially harsh if these are then further concealed from HMRC.

Do I need to file a personal tax return?

Most people in the UK will not need to fill in a tax return (SA100) because tax is deducted automatically from their wages through the Pay As You Earn (PAYE) system. Tax is also deducted from savings and pensions at source. If wages, savings or a pension are your only form of income HM Revenue and Customs (HMRC) will not send you a tax return to complete.

Self Assessment is the system that the government uses to collect income tax that is not deducted at source. If you are sent a tax return for Self Assessment you are required by law to report details of your taxable income and capital gains. HMRC uses the information on your tax return to work out how much tax you owe or whether you are due a tax refund or can claim tax allowances and reliefs.

HM Revenue and Customs (HMRC) may issue a tax return to you each tax year (the tax year runs from 6 April one year to 5 April the next). If you receive a tax return, you must either fill it in or tell HMRC why you think you do not need to. HMRC will confirm in writing if they agree that you do not need to complete one.

HMRC will issue you with a tax return if you:

  • are self employed and earned more than £1,000 in the tax year
  • are a company director
  • received more than £2,500 in rental income from property
  • income from savings and investments was more than £10,000
  • income from shares and dividends was more than £10,000
  • have income from abroad
  • lived abroad and had a UK income
  • household receives Child Benefit and someone in your household has a taxable income above £50,000.
  • were paid over £100,000

The form can be completed online or by filling in a paper form. The paper form must be completed by 31 October following the end of the tax year. The online tax return must be completed by 31 January following the end of the tax year.

If your tax return is not completed by the stated date you will receive an automatic penalty. The penalty is £100 if it is up to 3 months late or more if it’s later. Refer to HMRC’s calculator to estimate how much your penalty will be if your return is over 3 months late.