How to file income taxes in the UK in 2026

Most UK workers don't need to submit tax returns because income tax is taken directly from salaries via PAYE (Pay As You Earn) system. However, you must file a Self Assessment tax return if you're self-employed (earning over £1,000 annually), in a business partnership, earn over £150,000 from employment, or have untaxed income from property, investments, or foreign sources.

Need tax support in the UK? Find financial advisors and tax services to help manage your obligations.

How Much Income Tax Will I Pay in the UK in 2025?

Income tax in UK falls into series of brackets. England, Wales, and Northern Ireland use same thresholds while Scotland has its own tax brackets. For 2024-25 tax year:

England/Wales/Northern Ireland: Personal allowance up to £12,570 (0%). Basic rate £12,571-50,270 (20%). Higher rate £50,271-125,140 (40%). Additional rate £125,141+ (45%).

Scotland: Personal allowance £12,570 (0%). Starter Rate over £12,571-14,876 (19%). Scottish Basic Rate over £14,876-26,561 (20%). Intermediate Rate over £26,561-43,662 (21%). Higher Rate over £43,662-75,000 (42%). Advanced Rate over £75,000-125,140 (45%). Top Rate over £125,140 (48%).

UK Income Taxes for Foreigners

Same rules apply to international residents of UK meaning they're taxed on worldwide income. However, there are agreements with about 130 countries to prevent double taxation. If taxed at source of income from another country, you can usually claim tax relief to get some or all of this back. Every US citizen and Green Card holder must file tax return with IRS even those living abroad. Long as you're paying taxes in another country, you usually don't owe anything to IRS but it's essential to make sure and law says you still have to file.

How to File Your UK Income Tax: Step-by-Step and Deadlines

UK tax year runs from 6 April until 5 April. For 2023-24 tax year: Registration with HMRC deadline is 5 October 2024. Submitting paper return deadline is 31 October 2024. Submitting online return deadline is 31 January 2025. Paying tax deadline is 31 January 2025. In event that you miss tax deadline, you must usually pay penalty.

How to Register for Tax in the UK

When coming to work in UK, one of first things you should do is apply for National Insurance number. This is used to track contributions to National Insurance as personal identifier and to ensure you're paying correct amount of tax. You can apply for National Insurance number online via UK Government. Before filing your first Self Assessment tax return, you must register with HMRC. You can usually do this through your tax account on UK Government Gateway.

Deductibles and Tax Relief

When filling out your tax forms, it's important to note certain deductibles to lower your tax bill. Work-related deductibles include: reimbursement for business travel (45p per mile up to 100,000 miles and 25p per mile after that), expenses on business trips, work uniform expenses, membership fees from HMRC-approved list, and costs for working from home. You can also claim tax relief on certain personal payments: maintenance payments (10% of maintenance paid to ex-spouse or civil partner, maximum £428 per year), charitable donations (tax-free), and pension contributions.

What Happens if I Don't Pay My Income Tax on Time?

If you miss deadline for submitting your tax return or paying what you owe, you'll have to pay penalty fee of £100 if up to three months late. After that, fine increases and you may accrue interest. HMRC will contact you if you miss tax payment. Refusal to pay or contact HMRC can result in: being contacted by debt collection agency, amount owed being collected directly from wages, bank account, or savings, HMRC taking your belongings and selling them, being taken to court, or being made bankrupt. When you know you won't be able to pay your tax on time, get in touch with HMRC as soon as possible. In many situations, you can organize payment plan to cover what you owe.