A Guide to Filing 2 Tax Returns
A question I often hear is, “Can I file 2 tax returns?” The short answer is yes, but only in specific circumstances. Most individuals only need to file one tax return per tax year, but there are situations where you may be required to submit additional filings. In this blog, I’ll explain when filing multiple tax returns is necessary, how to manage them efficiently, and what to keep in mind to stay compliant with HMRC.
1. When Might You Need to File 2 Tax Returns?
Dual Tax Obligations
If you have income sources or responsibilities that require separate tax reporting, you may need to file more than one tax return. Here are some scenarios where this might happen:
- Personal and Corporation Tax: If you’re a company director, you’ll need to file a self-assessment tax return for your personal income and a corporation tax return for your company’s profits.
- UK and Overseas Taxes: If you earn income both in the UK and abroad, you may need to file a UK tax return and a tax return in another country, depending on that country’s tax laws.
- Amended Returns: If you’ve already submitted a tax return but need to correct an error or include additional information, you can file an amended return. While this isn’t filing “2 returns” in the traditional sense, it does involve submitting a second version for the same tax year.
2. Filing a Personal and Corporation Tax Return
Personal Tax Returns for Company Directors
As a company director, you’re required to file a self-assessment tax return to report any personal income, such as:
- Salary received from your company.
- Dividends from company shares.
- Other income sources, like rental income or investments.
This return ensures HMRC can assess your personal tax liability.
Corporation Tax Returns for Limited Companies
If you own a limited company, you must also file a corporation tax return (CT600) to report the company’s profits and calculate the corporation tax owed. This is separate from your personal tax return and is a legal requirement for all active limited companies in the UK.
3. Filing in the UK and Another Country
Dual Residency and Tax Treaties
If you’re a UK resident but also earn income in another country, you may be required to file tax returns in both jurisdictions. For instance, if you work abroad part-time but are still a UK resident for tax purposes, you’ll need to report your global income to HMRC.
Many countries have double taxation agreements with the UK to prevent you from being taxed twice on the same income. When filing, you can claim relief through these treaties, but understanding the process often requires professional advice.
4. Filing an Amended Tax Return
Correcting Errors in a Previously Filed Return
If you’ve already filed your tax return but later realise you made a mistake or forgot to include certain income or deductions, HMRC allows you to file an amended return. You can make corrections for up to 12 months after the 31st January filing deadline.
How to File an Amendment
Amending your return can be done online through your HMRC account or by submitting a paper correction. Make sure to provide accurate details and clearly explain the changes you’re making. If the amendment results in additional tax owed, pay the balance promptly to avoid penalties.
5. Key Considerations When Filing Multiple Returns
Staying Organised
Filing multiple tax returns can quickly become overwhelming if you’re not organised. Keep separate records for each return, whether they’re for personal, business, or international tax obligations. Tools like accounting software or a well-maintained spreadsheet can help keep everything in order.
Avoiding Duplicate Reporting
If you’re filing both a personal and corporation tax return, ensure income is reported in the correct place. For example, dividends from your company should be included in your personal tax return, while profits and expenses belong in the corporation tax return.
Meeting Deadlines
Each tax return has its own deadline:
- Self-assessment tax return: Due by 31st January if filed online.
- Corporation tax return: Must be submitted within 12 months of the end of the company’s accounting period.
- International tax returns: Deadlines vary depending on the country, so check local regulations.
Failing to meet these deadlines can result in penalties for each return.
6. How Professional Help Can Simplify the Process
Managing multiple tax returns can be complex, especially if you’re dealing with international income or running a business. Working with an accountant ensures that all your returns are accurate, compliant, and submitted on time. Professional help also reduces the risk of errors and missed deadlines, which can lead to costly penalties.
How TRW Accountants Can Help
At TRW Accountants, we specialise in handling all types of tax returns, from personal and corporation tax to international filings. Whether you’re filing a second return for your business or need help correcting a previously submitted return, our team provides expert guidance to make the process seamless. Contact us today to discuss your tax needs and how we can help.
Conclusion
So, can you file 2 tax returns? Yes, but only in specific scenarios, such as managing both personal and corporation tax or dealing with international income. While the process may seem complicated, staying organised, meeting deadlines, and seeking professional assistance can simplify the task. By understanding your tax obligations and ensuring all returns are accurate and compliant, you can avoid penalties and handle multiple filings with confidence.
For further insights, explore our resources on Who can do tax returns? and Are tax returns done alphabetically?