A HMRC tax Stands for Her Majesty’s Revenue and Customs. It is the important aspect of the United Kingdom’s tax system which ensures that an individual and business report their income, expense, and other financial information to government bodies through HMRC company tax return. Government bodies collect the tax from the people and the businesses located in the UK.
Purpose of HMRC Tax Returns
HMRC tax return is to act for collecting and assessing the proper amount of taxes which is payable by individuals and businesses in the country of the UK. let’s explore some of the purposes:
- The main purpose of the HMRC tax returns is to collect the revenue for the UK Government.
- With the provided information on tax return, the agency can locate the difference and take the needed actions to find the potential of tax or fraud.
- HMRC easily allocates the resources effectively from the data acquired from the tax returns.
- To examine the effectiveness of tax policies, HMRC tax returns can be very helpful.
- HMRC advances transparency and accountability in the tax system after individuals and businesses provide their tax returns.
Who Needs to File a HMRC Tax Return?
There is no need for everyone to file a tax return. It is not necessary for those individuals who have straightforward financial situations like the ones who have earned through employment with income taxed under Pay As You Earn (PAYE). But if you are one of the below mentioned categories then you have to pay the tax returned limited HMRC:
- Individual who are self employed and sole traders
- Partners of a partnership business
- Directors of the company
- Landlords with rental income
- High-income earners who exceed the annual income point
- Individuals with income from overseas
Process of Filing HMRC Tax Returns
The steps which are involved in filing a tax return are:
Step1 -> It is necessary that taxpayers have to register with HMRC.
Step2 -> Collect all relevant financial records which include income statements, receipts, and expense records.
Step3 -> Fill the Self Assessment Tax Return form.
Step4 -> Calculate the tax liability with the help of information provided by HMRC.
Step5 -> Submit your online form to the portal.
Final Verdict
HMRC company tax returns are very helpful for the individuals and businesses to fulfill their legal obligations and contribute to the country’s revenue system. At JD Accounting, we provide the service called HMRC company tax returns which helps you to submit your tax return on time.