UK Tax Return 2026: Complete Guide for Employees

Most employees in the UK pay tax through PAYE (Pay As You Earn), which means tax is deducted automatically from your salary by your employer. However, in certain circumstances you may need to complete a Self Assessment tax return. This guide explains the UK tax system, current rates, and what employees need to know for the 2025/26 tax year.

The UK Tax System

The UK tax year runs from 6 April to 5 April the following year. HM Revenue & Customs (HMRC) administers income tax. Most employees pay tax automatically through PAYE, but you must file a Self Assessment return if you have additional income or meet other criteria.

Income Tax Rates 2025/26 (England, Wales & Northern Ireland)

• •Personal Allowance (income up to £12,570): 0%
• •Basic rate (£12,571 – £50,270): 20%
• •Higher rate (£50,271 – £125,140): 40%
• •Additional rate (over £125,140): 45%

Scottish residents pay different rates (Scottish Income Tax).

National Insurance Contributions (NICs)

Employees also pay National Insurance:

• •Class 1 NICs on earnings between £12,570 and £50,270: 8%
• •On earnings over £50,270: 2%

National Insurance funds the NHS, State Pension, and other benefits.

Who Needs to File a Self Assessment Return?

You must complete a Self Assessment return if you:

• •Are self-employed with income over £1,000
• •Have untaxed income (rental income, dividends, savings interest)
• •Earn over £100,000
• •Have income from overseas
• •Claim the Marriage Allowance or Blind Person's Allowance

Key Deadlines

• •31 October: Paper returns deadline
• •31 January: Online returns and payment deadline
• •31 July: Second payment on account (if applicable)

Allowable Deductions and Relief

As an employee, you can claim:

• •Work expenses: tools, protective clothing, professional subscriptions, business travel
• •Working from home allowance: up to £6/week without receipts
• •Pension contributions: tax relief on contributions
• •Gift Aid: donations to charity
• •Marriage Allowance: transfer unused Personal Allowance to spouse

Tips for Employees

1. Check your tax code: Your tax code determines how much tax is deducted. Report changes to HMRC promptly.
2. Use HMRC's online account: Manage your tax affairs, view your tax code and income history at gov.uk/hmrc-online.
3. Claim expenses: Many employees miss out on legitimate tax relief for work expenses.
4. P60 and P11D: Keep these documents — they show your total income and tax paid, and any benefits in kind.5. HMRC helpline: Call 0300 200 3300 for income tax enquiries.

Frequently Asked Questions

Do I need to file a tax return as an employee?

Most employees don't need to — PAYE handles it. But you must file if you have other income, are self-employed, or earn over £100,000.

When is the tax return deadline in the UK?

31 January for online returns (for the tax year ending 5 April the previous year). Paper returns must be filed by 31 October.

What is a tax code and how does it affect me?

Your tax code (e.g. 1257L) tells your employer how much tax-free income you're entitled to. Check it's correct on your payslip or via your HMRC online account.