Personal Tax Returns

Keeping up to date with the tax compliance legislation can at times be challenging and time consuming. There is a lot of information available online, through various websites including HM Revenue & Customs however, its not always easy knowing what applies to your specific circumstance as well as when or how.

'Let us take on the burden of your personal taxes'

UNDERSTANDING THE UK PERSONAL TAX SYSTEM

Taxation is an essential part of how the government funds public services like healthcare, education, and infrastructure. For individuals in the UK, understanding how and when taxes apply can seem confusing.

We will break down the key aspects of how UK taxation works for individuals.

What is Tax?

In simple terms, tax is money that individuals and businesses must pay to the government. The government uses this money to fund services like the NHS, schools, roads, and more. In the UK, there are different types of taxes, and individuals are taxed on various aspects of their income and wealth.

Income Tax

Income tax is the most common form of tax that individuals pay. It applies to money you earn, such as:

Wages from your job
Profits from a business
Rental income
Savings interest

How it works:

The amount of income tax you pay depends on how much you earn. The UK has a "progressive" tax system, meaning the more you earn, the higher your tax rate.

Here’s a basic breakdown of the tax bands for the 2025/2026 tax year:

Personal Allowance: You can earn up to £12,570 a year without paying any income tax.
Basic rate: 20% on income between £12,571 and £50,270.
Higher rate: 40% on income between £50,271 and £150,000.
Additional rate: 45% on income over £150,000.

For people earning more than £100,000, the Personal Allowance (£12,570) gradually reduces as income exceeds this threshold.

How Do You Pay Tax?

Through PAYE: If you work for an employer, they will automatically deduct your income tax and National Insurance contributions from your wages before you receive them.

Self-Assessment: If you're self-employed or have other income that isn't taxed through PAYE, you'll need to complete a tax return each year (Self-Assessment).

FAQ's

What is self-assessment?

Self-assessment is a system or regime by which Her Majesty’s Revenue & Customs (HMRC) assesses and collects direct tax in the UK.
Should I complete a self-assessment tax return?

Most people who pay income tax in the UK do not have to complete self-assessment tax returns. These are primarily employees whose tax is deducted at source under the Pay as you Earn system (PAYE). Self-assessment therefore applies to individuals such as the self-employed (sole traders) who earn in excess of £1,000, landlords that receive rental property income, individuals who receive income from savings, investments and dividends, foreign income, income from tips and commission and any other type of untaxed earnings.
When are self-assessment tax returns due?

The UK tax year starts on 6 April each year and ends on 5 April of the following year. Self assessment returns are due on the 31 January following the end of the tax year. For individuals who wish to submit paper returns, the deadline is 31 October following the end of the tax year.
What are payments on account?

Payments on account are amounts that some individuals are required to pay towards their estimated tax liability for the current tax year. They are calculated based on the previous tax years liability and are paid in two equal instalments of 50% each on the 31st January and the 31st July. These amounts are then deducted from the final liability for the year and a balance payment is usually made, together with a first payment on account for the following tax year.
How do I get the ball rolling?

As a starting point, you would need to register with HMRC in order to receive your 10 digit Unique Tax Payer Reference number (UTR). This number will enable you to submit your tax returns online by the 31st January deadline. If you are completing your own tax return, you would need to create an online account with HMRC once you receive your UTR number. Alternatively, if you need to help and support with getting your tax affairs complete and up to date then please get in touch for your free consultation.

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How Can We Help?

At MW Tax, we offer a comprehensive service designed to help you prepare, submit, and manage your tax affairs in a straightforward, understandable, and cost-effective way.

Whether you're a director, high earner, investor, landlord, or sole trader, we can help you navigate your tax affairs with ease.

Our goal is to oversee the entire compliance process, handling all the mundane and complex tasks while keeping you informed every step of the way, giving you complete peace of mind.

Your time is precious! Let us take on the burden of your personal taxes, so that you can spend your valuable time concentrating on the things in life that you love to do.

Our Services Include:

Arranging a flexible consultation meeting, either face to face or virtually, using trusted technology, to discuss your personal tax affairs.

Providing a pro-active step by step plan, on how to move forward, based on your current and future circumstances.

Liaising with HM Revenue & Customs on your behalf regarding all tax related matters.

Collating information from third parties (where relevant) on your behalf.

Preparing and submitting your annual self-assessment tax return to HM Revenue & Customs by the relevant deadline.

Calculating and advising on your current tax position including balancing payments, tax repayments and, where applicable, payments on account due by the deadlines.

Advising on how to make payment correctly and safely.

Responding to and dealing with queries that HM Revenue and Customs may raise.

Providing advice on how to mitigate your tax liabilities, using efficient and effective tax planning techniques.

Keeping you updated on the progress of your tax return.

Providing appropriate updates to tax changes that may affect you.

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