Do I need to complete a tax return?

Some people in the UK need to fill out a self-assessment tax return and submit it to HM Revenue and Customs (HMRC) before the January deadline. As well as helping you determine whether you need to complete a tax return, we explain how to submit one and what happens if you file your tax return after the deadline.  

A self-assessment tax return is used by HMRC to calculate the tax you’ll need to pay based on your income. If you’re employed, your employer takes care of this and tax is automatically deducted from your wage, pensions or savings, and this is known as PAYE (pay as you earn). 

If you’re self-employed or receive any other means of income, such as interest you earn from savings or income from a rental property you own, you’ll probably need to complete a self-assessment tax return.

Now you know what a self-assessment tax return is, you may be wondering whether you need to complete one. The answer depends on your employment status and personal circumstances. 

In the UK, most employed people are taxed at source (PAYE) and therefore won’t need to complete a tax return. However, you may need to complete a self-assessment tax return if you’re self-employed as a sole trader and have earned more than £1,000 in the previous tax year (usually 6th April to 5th April), or if you’re a business partner or director of a limited company. 

Completing a tax return means you’ll know how much income tax and national insurance you’ll have to pay on the profits generated by your business. 

You also may need to complete a tax return if any of the following applies to you:

• You receive rental income of more than £1,000 from property that you personally own 
• You made over £6,000 in profit from investments – usually property or stocks; shares in an ISA don’t count.
• You received more than £10,000 from dividends – also not from a stocks & shares ISA
• You received more than £10,000 in savings interest – not from a savings ISA
• You want to claim tax relief from pension contributions if you’re a higher rate or additional rate taxpayer
• You owe capital gains tax from selling a property or asset and have earned a profit
• You want to claim child benefit, and you or your partner’s income exceeds £50,000
• You receive taxable income from abroad, or you live abroad but receive an income in the UK
• You’re a trustee of a registered pension scheme or any other trust
• You’re a trustee or representative of someone who has died
• You have received a P800 form from HMRC that says you didn’t pay enough tax during the previous year, and you need to pay an outstanding sum

We’ve already established who needs to complete a tax return, but what about when? Generally speaking, you’ll need to submit your tax return by 31st October after the tax year (if filing on paper) or by 31st January if you complete a tax return online. Some exceptions apply, for example, you’ll need to submit your online return by the 30th December if you want HMRC to automatically collect tax you owe using your tax code and you owe less than £3,000.

These are the latest dates you can submit your tax return but, of course, you don’t have to wait until then. You might want to complete your tax return as soon as possible after the end of the tax year, which finishes on 5th April. 

For some people, filing their tax return early provides peace of mind and gives them plenty of time to organise their finances for the year ahead. Plus, if you’re due a refund from HMRC you’ll receive it that much sooner.

Learn more about the UK tax return deadline.

Yes, you can use HMRC’s online service by first registering on the GOV.UK website. After registering, you may need to wait up to seven days for your Personal Identification Number (PIN). That means it’s important to register early, so you avoid a late tax return. 

After receiving your PIN and using it to log in, you’ll be able to complete your tax return form. Once you’ve submitted your information, the online system will perform the tax calculations for you, and you’ll receive an acknowledgement that your tax return has been safely received.

You can pay your tax return via bank transfer, debit card or cheque. You can also pay at your bank or another financial institution if you’ve received a paying-in slip from HMRC.