If you’re a trustee or a beneficiary of a UK trust, the R185 (trust income) form is likely to cross your path at some point. It’s a simple but important document, and getting it right can save everyone a lot of hassle. Here’s a practical explainer for families, with clear steps and examples to help you avoid common mistakes.

What Is the R185 (Trust Income) Form?

The R185 is a form trustees give to beneficiaries to show how much income they’ve received from the trust in a tax year, and how much tax (if any) was deducted before payment. Beneficiaries use it to complete their tax return, or simply to keep their records up to date. Trustees must complete one for each beneficiary every tax year, and keep copies with the trust’s records.

When Is It Needed?

• Every tax year in which the trust pays income to a beneficiary.

• Whenever a beneficiary needs to prove trust income for their own tax or financial records.

• Trustees keep a copy; the beneficiary gets the original or a PDF scan.

Step-by-Step for Trustees

1. Keep a Simple Income/Expense Log
Throughout the year, record all trust income (interest, dividends, etc.) and expenses (bank charges, fees).

2. Record Each Distribution
Note the date, amount, recipient, and source of income for every payment made to a beneficiary.

3. Total Up at Year-End
Add up the total income paid to each beneficiary, and note any tax deducted at source.

4. Complete an R185 for Each Beneficiary
Fill in the form, sign and date it, and make sure all details are correct.

5. Store Copies Safely
Keep a copy of each R185 with the trust’s bank statements and notes. This helps if HMRC ever asks for evidence.

What Figures Go Where (Plain English)

• Income Type: If the form asks for a breakdown, show what was paid (interest, dividends, etc.).

• Gross vs. Net: Some boxes ask for the gross income (before tax), others for the net amount (after tax). Double-check before filling in.

• Tax Deducted: If no tax was taken off before payment, write zero. The form is still useful for the beneficiary’s records.

Examples

Uni Rent Top-Up:
Amina receives £1,200 of bank interest income from the trust over the year. Trustees give her an R185 showing £1,200 interest and £0 tax deducted.

Mixed Sources:
The trust earns £300 in dividends and £200 in interest, then pays Isaac £400 total. Trustees show the split on the R185 if required, or attach a short note explaining the sources.

Discretionary Trust:
Different beneficiaries receive different amounts. Each gets an R185 for their share, with details of the income type and tax deducted.

Watch-Outs and Workarounds

• Missing Records:
  Trying to recreate payment history is slow and stressful. Solution: keep a one-line note for every payment and file bank statements monthly.

• Confusing Tax:
  If you’re unsure whether tax was deducted at source, add a note for the beneficiary and keep your trustee log tidy.

• Delayed Forms:
  Agree an annual date to issue R185s (for example, by the end of May) so beneficiaries can complete their tax returns without last-minute panic.

What Beneficiaries Do With It

• Tax Return:
  Enter the figures in the interest or dividend sections as appropriate.

• No Tax Return?
  Keep the R185 anyway. It’s useful if your circumstances change or if HMRC asks for evidence later.

• Check Your Details:
  Make sure your name and address are correct. If not, ask the trustee to update the form.

What to Do Next

• Set up a simple spreadsheet or notebook page for the trust’s income and distributions.

• Add a calendar reminder to prepare R185s every year.

• Give each beneficiary their copy and save a PDF in the trust folder.

Caira is backed by tens of thousands of legal and government documents, updated weekly, which helps keep guides like this grounded and practical for real families.

Gentle Reminder

This article provides general information for the UK. It isn’t legal, financial or tax advice. If you’re unsure, keep notes and ask questions early—it saves time and stress later.