Individual - Tax administration

Last reviewed - 05 December 2023

Taxable period

The taxable period for individuals runs from 1 July, or the commencement of the source of income (if later), to 30 June in the year of assessment.

Tax returns

Individuals are required to file returns and calculate their tax liability for the year. The return, together with the estimated liability, needs to be accompanied by payment of the tax due.

The due date for filing is 30 November. Individuals liable to tax or having assessable income for a year of assessment must make a full and complete return of their income for that year by 30 November immediately following the end of that year of assessment. Failure to submit a return by this date will result in a GBP 50 fine, which will increase by a further GBP 300 after three months.  If the failure continues beyond six months, an additional penalty of GBP 500 is payable.

Payment of tax

For employees, the collection of tax is initially through a pay-as-you-earn (PAYE) system. Every employer paying emoluments to an employee is required to deduct a specified amount of tax from the amount of emoluments.

At the end of the year of assessment, the employer is obligated to make a return of the employees' emoluments and tax deducted together with the payment of any outstanding tax.

Where the source of income is not collected under the PAYE system, individuals are required to make two payments on account, on 31 January and 30 June, in each year of assessment based on the previous year's assessment. Each payment should be equal to 50% of the previous year's tax payable. The balance of tax due (i.e. the actual liability less payments on account) is due on the date of filing of the return.

Late payment will result in a penalty of 10% of the amount of tax due. This will increase to 20% after a further 90 days.