Tax Return
Tax Return is the end-of-year submission under UK’s Making Tax Digital (MTD) for Income Tax regime. It brings together all income, expenses, adjustments and reliefs associated with your NINO (National Insurance Number) for a tax year. By submitting it, you confirm to HMRC that all your records are complete and accurate. HMRC then uses this information to calculate the final tax liability or refund for that tax year.
With tax return, you do not add any new information. All the details you had earlier submitted will be fetched into Zoho Books, which you can review, finalise and submit to HMRC.
Prerequisites
Before you proceed to submit the tax return, ensure that you:
- Submit all four quarterly updates to HMRC.
- Record income from all applicable sources, including business, property, interest and dividend income.
Fetch Tax Return into Zoho Books
To fetch the tax return values, all your quarterly updates and tax return for the tax year must be listed in your Zoho Books organisation.
Here’s how:
- Go to Filing & Compliance on the left sidebar and select Income Tax.
- Click + Fetch Details From HMRC in the top right corner.
All the quarterly updates and tax return associated with your NINO will be displayed in Zoho Books.
To fetch the latest tax return values from HMRC:
- In the To Be Filed tab, select the tax return you want to update. This may take a few minutes to be updated in Zoho Books, during which the status will be Calculation In Progress.
- Click Refresh to check the progress.
Once the values are processed, they will be displayed in the Tax Return page.
Finalise Tax Return
Once you fetch the tax return details from HMRC, you can review and finalise them.
Here’s how:
- Go to Filing & Compliance on the left sidebar and select Income Tax.
- In the Tax Return section, select the tax return you want to finalise.
- In the Tax Return page, review the amounts in the respective boxes.
- Click Finalise Return.
- In the confirmation pop-up, read the terms and click Finalise Update.
The tax return will be marked as Finalised.
Recompute Tax Return
If there are any discrepancies in your tax return, such as a value mismatch between HMRC and Zoho Books, you need to recompute it in Zoho Books, so that they are up to date with the latest values available in the HMRC portal.
To recompute your tax return in the Draft status:
- Go to Filing & Compliance on the left sidebar and select Income Tax.
- In the Tax Return section, select the tax return you want to recompute.
- In the Tax Return page, click Fetch & Recompute in the top right corner.
The values will now be recomputed and updated.
To recompute your tax return in the Finalised status:
- Go to Filing & Compliance on the left sidebar and select Income Tax.
- In the Tax Return section, select the finalised tax return you want to recompute.
- Click the More icon on the top right and select Edit.
- In the confirmation pop-up, click Continue to Edit.
Now, the tax return will be changed to Draft status and you can fetch the updated values from HMRC.
- In the Tax Return page, click Fetch & Recompute in the top right corner.
The values will be recomputed in Zoho Books to match the updated ones available in HMRC.
Note:
Once the values are recomputed, you must finalise the return again.
Submit Tax Return to HMRC
Once the tax return is finalised, you can submit it to HMRC.
Here’s how:
Go to Filing & Compliance on the left sidebar and select Income Tax.
In the Tax Return section, select the tax return you want to submit to HMRC.
In the Tax Return page, click Send Update in the top right corner.
In the confirmation pop-up, read the terms and click Send Update again.
The tax return will be sent to HMRC, and will be marked as Submitted in Zoho Books.
Note:
You can start submitting your tax return once the respective tax year ends (from April 6th) and the last date to submit your tax return would be January 31st of the following tax year. For example, for the 2026–27 tax year, the tax return must be submitted on or before January 31st, 2028.
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