Do I need to complete a Self Assessment tax return?

The UK tax system isn’t always easy to understand, however, knowing when you need to complete a tax return is your responsibility. There could be several reasons why you need to submit a return to HMRC, including:

• You worked for yourself in the tax year and earned more than £1,000. This could be because you’re a sole trader or a business partner.
• Your total income for the year from pensions or employments was more than £150,000.
• You or your partner claimed child benefit and your/their income was more than £50,000 (for 2023/24) or £60,000 (for 2024/25).
• If you rent out a property or are using your home as a short-term holiday let.
• You’re in receipt of more than £10,000 from dividends or savings and investments. This includes savings interest, money from bare trusts and interest in possession trusts.
• If you have sold or given away assets or shares and need to pay Capital Gains Tax.
• You have employment expenses on which you wish to claim tax relief amounting to more than £2,500.
• If you hold any of the following positions which can affect how you’re taxed:
  • Religious minister
  • Lloyds underwriter
  • Examiner, exam moderator or invigilator
  • Share fisherman

How do I register for Self Assessment?

When registering for Self Assessment for the first time, you must tell HMRC by 5 October following the tax year end in which you became liable for Self Assessment.

You can do this by completing form SA1 or form CWF1 if you’re self-employed, or you can register online via the HMRC website.

You may also want to complete a tax return to claim income tax relief or pay voluntary National Insurance contributions.

What if I no longer need to file a tax return?

Once you’ve registered for Self Assessment, HMRC will most likely continue to write to you asking you to send a return. However, if you believe you no longer need to file a return, you’ll need to contact them to explain this. For example, if you stopped working for yourself, HMRC might not be aware of this, so you’ll need to tell them so they can update their records.

HMRC may also assess your income streams and deem that you no longer need to complete a return, however, if you believe you still need to, then you should continue to complete and file a return to HMRC, otherwise HMRC could issue penalties and interest.

If you have untaxed income of between £500 and £10,000 from dividends or between £1,000 and £2,500 of any other untaxed income such as commission or money from renting out a property, you don’t need to send a return. However, you must tell HMRC so they can make an adjustment, usually through your PAYE code, to collect the tax. You can either call HMRC or check your income tax online by selecting the ‘Tell us about a change’ option.

HMRC also has a questionnaire where you can check whether you need to complete a tax return.

Need help?

If you need help preparing or submitting a tax return, please get in touch. Call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Jamie Butcher