tax return Archives - CruseBurke

The Low-Down on Income Tax in the UK for Foreigners

George31/01/2023tax , Tax Issues , Taxation

Being a resident of the UK when you come from another country has become increasingly common. If you’re considering this move, it’s essential to understand the income tax implications and related liabilities in advance. Settling in the UK as a foreign national involves adapting to new financial and legal responsibilities, particularly regarding tax. This guide is designed to give you a clear understanding of the current (2025) tax obligations for new residents in the UK, including how income tax works, the rules around foreign income, the double taxation agreement, and how your residency status affects what you owe. Need help with VAT Registration? Understanding VAT rules can be tricky — but registering for VAT doesn’t have to be. Let our experts handle it for you. Register for VAT with CruseBurke. Income Tax Rules for Non-UK Nationals When individuals move to the UK from another country, understanding how income tax applies can be challenging. Under UK tax rules, any individual—regardless of their nationality—is required to pay income tax if their total income exceeds the personal allowance, which remains £12,570 in 2025. This includes income from: Employment Self-employment Pension income Savings interest Rental income Dividends (with different tax rates and allowances) Your tax rate depends on how much you earn beyond the personal allowance, following the UK’s tiered tax bands. Why Do You Have to Pay Tax If You’ve Just Moved? If you’re newly moved to the UK, your residency status determines what income you must report and pay tax on. You are considered a UK resident for tax purposes if you meet any of the following: You’ve spent 183 days or more in the UK in a single tax year You have a home in the UK and have lived there for at least 30 days during the tax year You work full-time in the UK for a continuous 365-day period If you qualify as a UK resident, you’re generally taxed on your worldwide income. If you do not qualify as a UK resident (i.e., you’re a non-resident), you’ll only pay UK tax on UK-sourced income. What About the Remittance Basis? If you’re not domiciled in the UK, you may be eligible to use the remittance basis of taxation. This means you’ll only be taxed on foreign income and gains if they are brought into (remitted to) the UK. However, be aware: You lose your personal allowance and capital gains tax exemption when claiming the remittance basis. If you’ve been UK resident for more than 7 out of the last 9 tax years, you may need to pay the Remittance Basis Charge (RBC), which starts at £30,000. Seeking professional advice is highly recommended when considering the remittance basis. How Can a Double Taxation Agreement Help? The UK has Double Taxation Agreements (DTAs) with many countries. These agreements prevent individuals from paying tax on the same income in two countries. A DTA may: Exempt you from paying UK tax on certain foreign income Allow you to claim a foreign tax credit for taxes already paid abroad Your eligibility will depend on the specific treaty between the UK and your home country and the source and type of income. Split-Year Treatment If you move to the UK partway through the tax year, you may qualify for split-year treatment, where only the UK portion of the year is taxed on worldwide income. This helps avoid being taxed in the UK for the entire year when you were only resident for part of it. The Bottom Line Now that you have gathered a fair amount of information about the lowdown on income tax, we can bring the discussion towards wrapping up. It is imperative to have a basic awareness of the income tax low down when you are in the scenario of being a new resident of the UK. Otherwise, you will have to deal with the tax liabilities in your native country as well as the UK in the future. So keep conscious awareness about the lowdown on income tax for your own benefit. Disclaimer: The general information provided in this blog about low down on income tax includes text and graphics. It does not intend to disregard any of the professional advice in the future as well.

How to File Company Tax Return!

George30/08/2021Limited Company , Tax Issues

All limited companies in the UK need to file a company tax return at the right time. In today’s blog, we’ll have a look at what is a company tax return, how to file it, when you need to file it, and what are the penalties for late filings. Here’s all you should know as a limited company owner. What is a Company Tax Return? A company tax return (form CT600) is the financial information that includes spending, profits and corporation tax figures reported to HMRC annually. You can also report it to find out how much corporation tax you have to pay. It contains the following documents: Form CT600 Company’s annual accounts Calculations of the company’s tax Any supplementary documents If a company received a notice from HMRC to complete a tax return, then a company must do it as early as possible. It typically happens after the year-end. The deadline for filing a company’s tax return is a year (12 months) after the end of its accounting period. Get inclusive accounting, bookkeeping, tax, and company formation services with our qualified accountants at an affordable rate. Get in touch today! Filing a Company Tax Return To file a company’s tax return, you need to ensure that you have: Company’s statutory accounts (annual accounts) that are balanced means your total assets should match with your total liabilities and shareholders’ equity The government gateway ID and its password. If you don’t have one, you need to create it to use the service Your Companies House password and authentication code (in case of filing your accounts together). You can get these when you register with Companies House You can use the paper form (CT600) if: You have a valid reason for not filing online You want to file in Welsh And, you need to complete and post form WT1 to describe the reason behind using the paper form. To file your accounts with Companies House and the Company Tax return with HMRC. You need to have online account details of HMRC, Companies House online account details, and company registration number. Here is what you need to do as per your situation: If you want to file accounts and tax returns together, you can use HMRC’s online service or CruseBurke‘s services If you want to file your accounts with Companies House separately, you can send your accounts to Companies House online or Contact us to do it on your behalf If you want to file a tax return with HMRC separately, you can use HMRC’s online service or our services to do it Note: You’ll only need to prepare and file your Company Tax return yourself if you’re fully confident to do it. Otherwise, you might get in great trouble. So, taking the services of an accountant is worthwhile for the accuracy and efficacy of your return. If you need the help of an accountant or tax expert, contact our qualified accountants at CruseBurke! Deadlines for Completing Return To file a return and to pay taxes, you need to follow the below-mentioned deadlines: The return needs to be sent to HMRC within 12 months after the year-end Any Corporation Tax due must be paid within 9 months and a day after the end of the accounting year Suppose, a company’s accounting period is ending on 31 December 2019, it needs to pay any Corporation Tax that is due by 1st October 2020 and file the return by 31st December 2020. Generally, these are filed together. In case of filing them late, your company needs to pay financial penalties. Penalties for Late Filing On missing the deadline of the return, you need to pay fines. If you’re: One day late, you need to pay a £100 penalty Late for three months, you need to pay another £100 penalty Late for six months, you need to pay an additional/extra penalty of 10% on your corporation tax bill. A year late, you’re levied another 10% penalty on your estimated corporation tax bill On filing a return consecutively late for three times, the £100 penalty will increase to £500. Quick Sum Up So after reading this post, you have understood: what is a company tax return, how to file them, when you need to file them, and what penalties you need to pay in case you file them late. Bear in mind that only limited companies need to submit it. If your company is dormant for corporation tax, you don’t need to submit it. Moreover, sole traders and partnerships also don’t need to submit a return but their earnings are reported to HMRC. Turn to CruseBurke for preparing and submitting the return and save your time, money, and stress. We have a team of skilled accountants who will handle everything with HMRC and Companies House on your behalf. Contact us right away! Get an instant quote for a tailored offer at a fixed fee! Disclaimer: This blog is written for general information on the company’s tax return.

Who Needs to Complete a Self Assessment Tax Return?

George13/08/2021Personal Tax , Tax Issues , VAT

Find out what self-assessment is, who needs to complete a self-assessment tax return, when to submit one and what penalties you need to pay for late payments. Let’s delve into the details. There are over 12.1 million people in the UK who need to fill out and submit a self-assessment tax return to HMRC. The deadline to submit a self-assessment tax return online and pay the previous tax bill is 31st January. For the paper tax return, it is 31st October 2025. If you want to register for self-assessment as a self-employed/sole trader, not self-employed and a partner or partnership, you can register on 5 October 2025. A large number of our clients face problems while registering for self-assessment. Therefore, to make things easy, CruseBurke is offering self-assessment registration services for you to avoid stress and fuss. So what are waiting for click here to register today! What is Self Assessment Tax Return? Self-assessment is a system employed by HMRC to work out the tax on your income. Generally, the tax is deducted from your wages, pensions, and savings via PAYE (Pay As You Earn). But if you or your business is getting any income from another source, you need to report it to HMRC by sending a self-assessment tax return. Who Needs to Complete a Self-Assessment Tax Return? You need to complete a self-assessment tax return to HMRC annually to pay income tax and National Insurance (NI) against your earnings/profit. The tax return needs to be submitted if you: are a limited company director or a business partner are an employee/pensioner with annual earnings of £100,000 or more want to claim tax relief on pension contributions (higher or additional rate taxpayer) have earned £10,000 or over from investment income or savings interest need to pay capital gains tax from selling assets at a profit want to claim child benefit, if your income or the income of your partner is above £50,000 are the trustee of a registered pension scheme or of someone who has died If you receive a P800 notice from HMRC showing you underpaid tax, and you’re not repaying it through PAYE, you may need to file a tax return. are a Lloyd’s underwriter are a religious minister Remember that sometimes you need to pay taxes and NI via PAYE and need to complete your self-assessment. For instance, if you receive an investment income and operate a part-time business along with your employment. Furthermore, limited companies need to file their company’s tax return along with the tax return on personal income. CruseBurke offers financial and tax consultant services for contractors, self-employed individuals, and limited companies to stay on top of their finances. Work with our tax consultants today to address your tax returns! Contact now! When will HMRC Send you a Tax Return? Usually, HMRC will send a return to you if: you have earned income without paying tax on it (like income from investment, land, property or overseas) you’re a pensioner getting old age relief, though you need to send a short return with fewer details your capital gains have exceeded the annual exempt amount (£3,000) you were required to fill in a tax return last year Bear in mind that if you’re already aware of the tax you need to pay, you shouldn’t wait for HMRC to contact you. As it is your responsibility to declare your taxable income. After receiving a tax return from HMRC, you are legally bound to complete and submit it via post or online. On missing the deadline, you need to pay penalties and may also pay interest on the surcharges on any tax you that you need to pay. The deadline for sending tax returns via post is 31st October and online submission is 31st January. Penalties for Late Payments You need to prepare your tax returns before the deadline to avoid errors in the hassle of sending the returns late. You’d be liable to pay interest on unpaid tax and penalties. The standard penalties for sending tax returns late are as follows: Quick Sum Up Hopefully, now you know what is a self-assessment tax return, when to pay it to them, who needs to complete a self-assessment tax return, and the penalties for filing it late. Moreover, if your circumstances change like you receive new income from investments or shares, you need to inform HMRC about the changes. As it will affect your tax return. If you want to avoid paying hefty penalties, feel free to contact our certified accountants for accuracy and efficacy during the process of sending self-assessment tax returns! Disclaimer: This blog is written for general information on the self-assessment tax return.

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