Whether you’re self-employed, in a partnership, or the owner of a limited company, you may need to complete a tax return for HMRC.
You might even need to complete one if you’re employed – for example, because you get money from property which is separate to your employment income.
In this article, we’ll take a look at the different options available for sending a tax return, and also explore Making Tax Digital (MTD) Income Tax.
Filing your tax return using a paper form or online
There are different ways you can file your tax return and pay what you owe, including:
- Online
- Via paper form
Filing your tax return online is the most common method – and in some cases this is mandatory, especially with everything becoming digitalised. But in some cases you can still file a paper return.
When do I need to submit my tax return?
There’s often lots of noise around the deadline for submitting your online return (which is 31st January), but the deadline for submitting a paper return is earlier and must be received by HMRC by 31st October.
Do I need to register before I can send a tax return?
Yes, you’ll always need to register before sending a tax return.
If you’re a sole trader or partnership
If you’re a sole trader or part of a partnership, then the onus is on you to make sure you’re paying the correct amount of tax and National Insurance on your self-employed earnings.
The deadline to register for Self Assessment is 5th October in your second tax year of business.
Thankfully, sole traders can earn up to £1,000 tax-free before they need to register and start sending tax returns to HMRC. This is known as the trading allowance.
If you run a limited company
Limited companies, on the other hand, need to pay Corporation Tax.
Most choose to register for Corporation Tax when they first incorporate the business with Companies House. If you do decide to defer it then you’ll need to register for tax within 3 months of starting to trade.
Does the way I submit my tax return affect when I need to pay the bill?
It can, yes – because the kind of tax return you must send determines what kind of tax you owe and the deadline for paying it.
For example, if you need to complete a Self Assessment then the deadline for paying your bill is 31st January (following the tax year it relates to).
Corporation Tax must be paid by 9 months and 1 day after the end of your company’s accounting period.
Making Tax Digital (MTD)
Now, if you’re used to sending a Self Assessment to report self-employed or landlord income, Making Tax Digital is something you really need to familiarise yourself with – and possibly start preparing for.
In simple terms, it’s a government-led initiative to try and modernise the tax system, while also minimising mistakes in the process. It’s already been rolled out for all VAT-registered businesses, and now it’s being rolled out in phases for MTD Income Tax.
MTD IT will replace the traditional Self Assessment, so instead of an annual tax return you’ll send HMRC smaller, quarterly updates on MTD compatible software, followed by a ‘Final Submission’ by 31st January each year.
You’ll need to follow MTD IT rules by:
- April 2026 if you earn more than £50,000 from self-employment and/or property
- April 2027 for those earning more than £30,000 in the 2025/26 tax year
- And April 2028 for those earning £20,000 in the 2026/27 tax year
An accountant can help make sure you’re complying with the MTD rules, so don’t worry if you’re a bit confused!
What happens if I miss a payment to HMRC?
You’ll incur an automatic fine if you miss a payment, and it gets worse the longer you leave it. Interest is also charged on top of penalties for any late payments. So, if you can’t pay, get in touch with HMRC immediately – as you could prevent this by setting up a Time to Pay arrangement.
If you need help with any of this, don’t hesitate to hire an accountant who will be able to walk you through the process and ensure you’re operating in the most tax-efficient way possible.
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.
