Do you need to complete a self-assessment tax return?

If 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. 

Have 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. 

Date published 27 Sep 2021 | Last updated 13 Sep 2024

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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