We are often asked if it is necessary to register for Self-Assessment and file a tax return each tax year. The following notes are a brief outline of circumstances when you may need to register.
According to HMRC, you may need to send in a tax return in the last tax year if:
- you were self-employed
- you received £2,500 or more in untaxed income, for example from tips or renting out a property
- your income from savings or investments was £10,000 or more before tax
- your income from dividends from shares was £10,000 or more before tax
- you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
- your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
- you had income from abroad that you needed to pay tax on
- you lived abroad and had a UK income
- your taxable income was over £100,000
- you were a trustee of a trust or registered pension scheme
Certain other people may need to send a return (for example religious ministers or Lloyd’s underwriters). Usually, you won’t need to send a return if your only income is from your wages or pension.
Even if you are not required to file a return that does not mean that you should not keep an eye on the tax you pay each year. There are circumstances where you may have overpaid tax, for example if tax was stopped on interest related to compensation payments and is less than the annual tax-free allowance.
If you are at all uncertain that you should submit a return or contact HMRC to see if you have overpaid tax, please call, we would be delighted to help.