Do I Need To Complete A Tax Return?

Here, we will discuss everything you need to know about a self assessment tax return and whether or not you need to complete one.

What is self assessment?

Self-assessment is not a tax; it is a way of paying taxes. The idea behind self assessment is that you are responsible for completing a tax return each year if you need to and for paying any tax due for that tax year.

When you fill out your self assessment tax return, you need to mention not only the money you earned from your job but also any other income you have and the taxes you paid on it. It's not just about the specific income that puts you in the self assessment category; it's a summary of all your taxable income and gains for the entire year.

Do I need to complete a tax return?

You need to complete a self assessment tax return if:

• Your self-employment income was more than £1,000.
• You had income from renting out a property.
• You earned more than £2,500 in untaxed income, for example, from tips or commission.
• Your income from savings or dividends is above the relevant threshold.
• You need to pay Capital Gains Tax on profits from selling assets like shares or a second home.
• You’re a director of a company and taking income from the company.
• You, or your partner’s, income was over £50,000, and you’re claiming Child Benefit.
• You have income from abroad that you need to pay tax on, or you live abroad but have income in the UK.
• Your taxable income was over £100,000.
• If you earned over £50,000 in the 2024/25 tax year and make pension contributions, you might have to complete an assessment to claim back the extra tax relief you’re owed.
• You’re a trustee of a trust or registered pension scheme.
• Your State Pension was your only source of income, and it was more than your personal allowance.
• You received a self assessment notice to file from HMRC!

You can also fill in a self assessment tax return if you want to make voluntary Class 2 National Insurance contributions. This will help you qualify for benefits such as the State Pension. As an employee who has paid tax through the Pay As You Earn (PAYE) system, you will only need to fill in a self assessment tax return if you earn over £100,000.

Example

Let’s take the example of Sara. Sara runs a small online business and earns £1,500 from self-employment. She also rents out a property and makes £3,000 in rental income. Since her self-employment income exceeds £1,000 and her rental income is over £2,500, she is required to complete an HMRC self-assessment tax return to report her earnings and pay any necessary taxes. If Sara was also earning more than £50,000 and claimed Child Benefit, or if she received a self-assessment notice from HMRC, she would still need to file a tax return.

How do you register for HMRC self assessment tax return?

If you need to complete a self assessment tax return, you will need to register with HMRC. You can do this by visiting the HMRC website or calling the HMRC self assessment helpline at 0300 200 3310. When you register, HMRC will send you a Unique Taxpayer Reference (UTR) number. You will need this number to complete your tax return.

What are the self assessment deadlines?

You submit tax returns for tax years, not calendar years, and do this in arrears. For example, for the 2024/25 tax year – running 6 April 2024 to 5 April 2025 – you would need to:

• Register for self assessment by 5 October 2025 if you’ve never submitted a return before.
• Submit your return by midnight on 31 October 2025 if filing a paper tax return.
• Submit your return by midnight on 31 January 2026 if filing online.
• Pay the tax you owe by midnight on 31 January 2026.

If you fail to meet one or more of these deadlines, you might be charged a penalty fee and interest on late payments.

What information will I need to fill in a self-assessment tax return?

To fill in a self assessment tax return, you will need various pieces of information, including:

• Your Unique Taxpayer Reference (UTR) number.
• Your National Insurance number.
• Details of your income, expenses, and gains.
• Details of any pension contributions and other tax-efficient investments.
• The amount of information you need to provide will depend on your specific circumstances.

How to fill in a self assessment tax return

First, you need to create an account by answering a few questions here if you're a new user. Otherwise, you can simply log in to your account if you already have an account.

It will then take you to this page: https://assessment.taxd.co.uk/, where you will get a detailed questionnaire to file your self-assessment tax return. The questionnaire is divided into seven sections.

Note: If you’re a landlord, you will need to fill an additional section called “Rentals (SA100).”

Section 1: Introduction

Input details like your job status and additional income source.

Section 2: Residence (SA109)

In this section, you need to mention the number of days you spent in the UK, workdays in the UK, other countries you've lived in, your nationalities, and your ties to the UK.

Section 3: Employment (SA102)

If you select “Employed” during the tax year, you will fill out this section. Here, you will need your P60, P45, or P11D documents, as well as the details of your expenses (For the year).

Section 4: Rentals (SA100)

Here, you will add details about the property from which you earned money during the tax year.

Section 5: Pension and Benefits

In this section, we will ask you about the income relating to your pension, or state benefit and any taxes deducted from the pension or state benefit.

Section 6: Credits and Deductions

Select if anything from this, applies to you.

Section 7: General

This is almost the last stretch of your tax filing process. We ask you some general questions to make sure if have all the information that is needed.

Section 8: Personal Information

Finally, add personal information such as your birth date and address.

Once you are through all the sections, review the tax calculation and submit the return digitally to HMRC after verifying your identity.

If you want a detailed step-by-step guide, check out this video:

Once you are through all the sections, review the tax calculation and submit the return digitally to HMRC after verifying your identity.

Conclusion

Completing a self assessment tax return is necessary if you fall into any of the categories mentioned above. If you need to complete a tax return, it is important to make sure you do so by the deadline to avoid any penalty fees and interest charges. If you have any doubts about whether you need to complete a tax return, you can contact us at Taxd for advice.

FAQs

1. Do I need to complete a tax return if I am an employee in the UK?

No, the majority of taxes are taken care of through the PAYE system. However, if your tax affairs are complicated, you may need to complete a tax return.

2. What is self assessment?

Self assessment is a way of paying taxes; it is your responsibility to submit a tax return each year if you need to and to pay any tax due for that tax year.

3. Will I need to file a UK tax return if I am a non-resident?

Yes, if you have an income from a UK source, you will need to complete a tax return. The rules and regulations for filing a tax return for non residents are different from those for residents, so it is important to seek professional advice before filing your tax return.

4. Do I need to do a tax return if I earn under 10,000 UK?

You need to file a tax return if you earn under £10,000 and fall into these categories: landlords earning over £2,500 from property, self-employed individuals earning over £1,000, those with £10,000 from investments, or anyone with untaxed income over £2,500.

5. What happens if I don't file a tax return?

If you do not file a tax return, you may be subject to fines and other penalties. It is important to remember that filing a tax return is a legal requirement, and not doing so can have serious consequences.

6. What sort of income do I need to declare on my tax return?

You must declare any income you have received, including wages, salaries, dividends, savings and investments, rental income, and any other untaxed income sources. It is important to ensure that all your income is declared, as failure to do so could result in fines and other penalties.