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Do you need to complete a self-assessment tax return?
Several situations could require the completion of a self-assessment tax return, as they are not just for self-employed individuals. Employees, property owners and individuals who receive untaxed income may also need to file a tax return.
By Catherine Heinen, FCCAIf you receive a tax return notice from HM Revenue & Customs (HMRC), you must complete and submit it by the deadline. Failure to do so may result in penalties. However, if you think you do not need to complete a tax return, you can contact HMRC and request its withdrawal.
If this article has got you thinking that you may need to complete a tax return, but you haven't received notice from HMRC, speak to an accountant or give HMRC a call.
HMRC can charge penalties if you miss the deadline for submitting a tax return. Knowing when you may need to file a tax return is important. We look at several common scenarios when you will need to complete a self-assessment tax return.
Self-employed earning more than £1,000
You must always submit a tax return to HMRC if you are self-employed or have self-employed, freelance or side-hustle earnings of more than £1,000. This is because tax and National Insurance Contributions (NIC) have not been paid on these earnings. Your tax return will calculate the amount of tax you need to pay on these earnings.
Partner in a business partnership
If you are a partner in a business partnership you must complete a tax return to report your partnership earnings.
Think you need to prepare a tax return?
Contact TaxAssist Accountants for a free, no-obligation consultation.
Or contact usHave to pay Capital Gains Tax
If you have disposed of - or sold something - and made a gain, you may be liable to a Capital Gains Tax (CGT) bill.
Landlords should bear in mind 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.
Taxable earnings over £150,000
If your total taxable earnings are more than £150,000 (2023/24) then you’ll be required to complete a tax return. The reason for this is that due to tax thresholds and rates, there is a chance that you haven't paid tax at the correct rate.
Higher earners in receipt of child benefit
If your income is more than £60,000 and either you or your partner receive 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.
Untaxed income
You may also need to submit a self-assessment tax return to HMRC if you 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 return. However, the income may still be subject to tax. You should always check and if you are in doubt, HMRC provides an easy-to-use online tool to confirm if a return is needed.
Need help filing your self-assessment tax return?
Contact TaxAssist Accountants for a free, no-obligation consultation.
Or contact usFrequently Asked Questions
If you miss the deadline for your self-assessment tax return, it's important to speak to your accountant or HMRC as soon as possible. The sooner you rectify the issue and get the tax return filed and tax paid the better.
If you are late, you'll receive an automatic late filing penalty. You'll also be charged interest on late tax payments.
The deadline for completing a self-assessment tax return is 31st January, when completing this online. If you want to submit a paper tax return, the deadline is 31st October.
There are lots of benefits to getting ahead with your tax return, to find out more look at our content hub.
Generally, if you earn at least £1,000 of trading income you should consider if you need to file a tax return. This will depend on what other income you are receiving and speaking to an accountant, or using HMRC’s online checker will help you determine if you need to file a tax return.
Self-employed individuals, partners in business partnerships, landlords and individuals earnings over £150,000 may be required to file a tax return. Those in receipt of child benefit and earning over £60,000, or higher rate taxpayers earning interest income over £500 may need to complete a tax return too. For a comprehensive list check HMRC’s content on who must send a tax return.
If you earn more than £150,000, HMRC have confirmed that you will need to file a tax return. If your earnings are below £150,000 you may still have to submit a tax return, depending on your other income and circumstances.
Date published 27 Sep 2021 | Last updated 13 Sep 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.
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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