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Do you need to complete a tax return?

If you have relatively straightforward tax affairs and already pay tax through PAYE (Pay As You Earn) you probably won't need to complete a tax return. But if you have more complicated tax affairs - or income from several sources - you may need to complete one.

Who needs to complete a tax return?

The most common reasons for needing to fill in a tax return are listed below. If HM Revenue & Customs (HMRC) asks you to complete a tax return for any other reason (this will normally be to make sure that you’re paying the right tax and getting the right allowances) you must always do so.

You’re self-employed

If you're self-employed (including being a member of a partnership) you always have to complete a tax return.

Company directors, ministers, Lloyd’s names or members

You must complete a return if you’re any of the following:

  • a company director (unless you're a director of a non-profit organisation, for example a charity, and don't receive any payments or benefits)
  • a minister of religion (any faith)
  • a name or member of Lloyd's

Income above a certain level from savings, investment or property

If you don't already complete a tax return, you'll need to do so if you receive any of the following:

  • £10,000 or more income from savings and investments
  • £2,500 or more income from untaxed savings and investments
  • £10,000 or more income from property (before deducting allowable expenses)
  • £2,500 or more income from property (after deducting allowable expenses)
  • annual trust or settlement income on which tax is still due (even if you're only treated as receiving this income)
  • income from the estate of a deceased person on which tax is still due

You are 65 and receive a reduced age-related allowance

If you receive a reduced age-related allowance because you are 65 but your income is over a certain level (£24,000 for the 2011-12 tax year), you'll need to complete a tax return. But there are exceptions, for example if your tax affairs are very straightforward. Contact the Self Assessment Helpline if you think that this applies.

Income from overseas

You must complete a tax return if you have any foreign income that's liable to UK tax.

Your annual income is £100,000 or more

If you receive total income of £100,000 or more you'll need to complete a tax return. You may have higher or additional rate tax to pay that hasn't been collected through your tax code.

You need to claim certain expenses or reliefs

If you're employed and want to claim for expenses or professional subscriptions of £2,500 or more, you'll need to complete a tax return. You can just write to HMRC, with full details, if you want to claim expenses below this amount.

Some less common reliefs, such as Enterprise Investment Scheme relief or relief on Venture Capital Trusts, can only be claimed by completing a tax return.

You owe tax and HMRC can't collect it through your tax code, or you prefer to pay direct

If you pay tax through PAYE and owe tax at the end of the year, you'll need a tax return if either of the following applies:

  • HMRC can't collect the tax due by making a change to your tax code (they'll tell you if this is the case)
  • you don't want to pay the tax through your tax code - you prefer to make a direct payment instead

You have Capital Gains Tax to pay

If you have Capital Gains Tax to pay, for example you've sold, given away or otherwise disposed of an asset such as a holiday home or shares, you'll need to complete a tax return and the Capital Gains Tax pages.

You have lived or worked abroad or aren’t domiciled in the UK

You may need to complete a tax return if you are:

  • not resident
  • not ordinarily resident
  • not domiciled in the UK and claim the 'remittance basis'
  • dual resident of the UK and another country

Residency is a complex issue. Follow the link below to find out more about your residency status, the remittance basis and what to do next.

You are a trustee

You'll need a tax return if you are a:

  • trustee or personal representative (including someone who manages the tax affairs of a deceased person)
  • trustee of certain pension schemes
  • Tax returns for trustees

Things to check if you don't need a tax return

If you have checked the sections above and don't need a tax return, you still need to tell HMRC about new sources of income and any changes to your income if:

  • you pay tax through PAYE on income from a job or pension and your other taxable income changes or becomes liable to higher rate tax
  • you don't pay tax through PAYE and your total taxable income is more than or increases to more than your Personal Allowance and any Blind Person’s Allowance you are entitled to.

Your taxable income may increase if, for example you receive:

  • redundancy payments over £30,000 (payments below this amount aren't taxable)
  • a gain on a life insurance policy, also called a 'chargeable event'
  • income from new investments after you've come into some money

HMRC will decide if you need a tax return. If you pay tax through PAYE, HMRC may be able to collect the tax due through your tax code instead.

Types of tax return

There are different types of tax returns depending on the type of income you have. Find out more using the links below.

How to get a tax return

You need to register for Self Assessment before you can get a tax return. HMRC will use the information you provide to set up the right records for you and will send you a Unique Taxpayer Reference. You will then receive a letter each year, usually in April, telling you to complete your tax return. You can send your tax return online or on paper but there are lots of benefits to sending it online.

If you have registered for Self Assessment, received your Unique Taxpayer Reference but have not received a letter telling you to complete a tax return by the end of April, you should get in touch with HMRC.

Benefits of filing online

You can save time and paperwork by filing your return online. You'll receive an automatic acknowledgment and also find out what you owe or are due back right away, because the figures are calculated for you instantly.

More useful links

See also...

 

Do it online