For most people in the UK, their taxable income is collected through Pay As You Earn (PAYE), meaning they do not need to submit a self assessment tax return.
However, there are situations where you are required to complete a self assessment, (also know as a personal tax return) and crucially it is your responsibility to inform HMRC if one is needed. Each tax year, you should review your circumstances, and check whether you’re required to submit a return to ensure you stay compliant.
Common reasons you may need to submit a self assessment
This is not an exhaustive list, but here are some common situations where you may need to declare your income to HMRC via a self assessment tax return:
- you were self employed as a sole trader and earned more than £1,000
- you were a partner in a business partnership
- you received money from renting out a property
- you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value, (typically property or stocks)
- you had to pay the High Income Child Benefit Charge
- you had income from savings, investments and dividends
- you received foreign income (interest, dividends etc)
- You live abroad, but received UK-
Claiming tax relief
You may also need to file a return if you are eligible for tax relief on:
- gift aid charity donations made as a higher/additional rate taxpayer
- pension contributions
- investments in SEIS or EIS eligible startups or VCT funds
- significant work related expenses
When HMRC will notify you
HMRC may notify you that you need to submit one. If this happens, they’ll let you know by issuing you with a P800 form, or a notice to file a tax return. This could be for any reason, but some of the most common are:
- you didn’t de-register from self assessment, so HMRC are still expecting a tax return from you
- you’ve paid too little tax
- you have any untaxed income that cannot be collected through PAYE
Remember, it is your responsibility to work out whether a self assessment is needed, HMRC will rarely notify you directly. To help you decide, HMRC have an online checker (link online checker https://www.gov.uk/check-if-you-need-tax-return ).
Why use a Tax Adviser?
While some individuals choose to submit their self assessment tax returns themselves, typically when their tax situations are straightforward, it often makes sense to seek professional support for more complex situations.
If you have multiple income sources, international considerations, or you wish to take advantage of tax reliefs, working with a qualified tax adviser can save you time, reduce stress and often result in valuable tax savings, all while keeping you compliant with HMRC regulations.
How Maslins can help?
At Maslins, we’re experts in tax accounting. Our qualified advisers have extensive experience supporting both UK- based and international clients. Whatever your situation, we’ll help you to understand your requirements and handle your self assessment. Get in touch with our friendly team.
