Do I have to complete a self-assessment tax return?

Although not everybody needs to complete a self-assessment tax return, there are several situations where you could be required to complete one, even when you are an employee and have tax deducted from your wages. Because HM Revenue & Customs (HMRC) can impose penalties when you need to send a tax return but miss the deadline, it is important to be aware of situations where a tax return is needed.

Who needs to file a self-assessment tax return?

You must always send a tax return to HMRC if you: 

• are self-employed, and you earned more than £1,000  
• you are a partner in a business partnership 
• had total taxable income of more than £150,000 
• made capital gains 
• have untaxed income, such as: 
• money from renting out a property 
• tips and commission 
• income from savings, investments and dividends 
• foreign income 

If your earnings from the above sources fall below certain limits, you may not need to complete a tax return. However, the income may still be subject to tax. A good rule of thumb is that unless the income is tax free, is covered by your tax allowances or tax has been collected through your PAYE code, a tax return is normally required. 

You should always check the position and if you are in doubt, HMRC provides an easy-to-use online tool to confirm if a return is needed.  

Higher earners in receipt of child benefit

If your income is over £60,000 and either you or your partner get Child Benefit, HMRC will require you to complete a tax return to pay a tax charge, known as the ‘High Income Child Benefit Charge’.

Landlords with rental income

Most landlords who receive rental income will need to complete a return.

For landlords with undeclared rental income, it is important to address this sooner rather than later. The good news is HMRC have a special Let Property Campaign for landlords who are behind with their tax returns.

By making a voluntary disclosure, you can usually expect a lower penalty than HMRC would normally charge and obtain the best possible terms.

Landlords must remeber that where Capital Gains Tax (CGT) is due on the disposal of a UK residential property, the deadline for submitting a return and paying the tax is 60 days from the date of completion of the sale.

CGT is a complex tax with many reporting and payment deadlines, as well as potential reliefs that could lead to sizeable savings. It’s therefore important that you seek professional advice.

This above list is not exhaustive, but it will hopefully give you an idea of the sort of things that can trigger the need for a tax return. If you do need to complete a tax return, it’s important that you let HMRC know by 5th October (5th October 2024 for the 2024/25 tax year). 

Need help completing your self-assessment tax return

If you are having to complete a tax return for the first time and don’t know where to start, we can help. We offer a great range of tax advice for business owners and landlords and are well-versed in assisting with tax returns, Let Property Campaign disclosures and CGT returns. For an free initial consultation, call us today on 020 3196 4888 or drop us a line using our online enquiry form.

Date published 18 Oct 2022 | Last updated 2 May 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.