Do you need to file a Self-Assessment tax return?

Are you aware of the tax implications that could be imposed on you for the income that you generate? You may say you pay tax at source through PAYE – so that means that you’ve done your part? Unfortunately, that’s not necessarily the case.  

Are you required to file a tax return?

Many people are surprised to learn that they need to file a tax return, especially if they think they've paid all their income tax through PAYE. This applies equally to individuals and certain trusts. To avoid any surprises, take care to consider your circumstances to make sure you register and file your tax return on time. HMRC may issue penalties for late filings, even if you weren't aware you needed to file.

How do I know if I need to file a tax return, I hear you ask?

HMRC have a free online tool, which can help you work out if you need to be filing a tax return. But a general indicator could be:

• You’re self-employed and earned more than £1,000 in the tax year
• You’re renting out properties
• You receive income from securities and/or bank interest
• Your taxable income was in excess of £150,000
• You need to report and pay the high income Child Benefit charge
• You disposed of assets where there’s a gain exceeding the annual allowance (£6,000 for 2023/24) or proceeds are greater than £50,000. You may be eligible to report your gains (excluding UK residential property) using the ‘real time’ Capital Gains Tax Service instead of reporting on a tax return
• If you have income and/or gains as a result of disposals, trades or transactions with crypto assets
• You receive income from overseas
• You receive money from online promotions or brand deals through social media

Deadline

You need to notify HMRC if you need to file a return by 5 October following the tax year you started receiving chargeable income. You will not automatically receive a notice to file a return by HMRC.

Penalty

HMRC may charge a failure to notify penalty, but typically no penalties are issued if the return is filed on time and the tax liability is paid by the 31 January deadline.

Need help?

If you’re unsure about your tax situation, please get in touch. Our friendly Private Client, Trusts and Probate team are here to help and would be happy to have a discussion with you.

Chloe Griner