Do I need to complete a self assessment tax return?
Updated: 2 hours ago
Not everyone needs to complete a self assessment tax return, but you might be surprised by the circumstances that mean you do.
If you've started freelancing, earned some extra income alongside your job or received money from investments, it's worth checking whether you need to let HMRC know.
Who needs to complete a tax return?
You will usually need to complete a self assessment tax return if you:
Earned more than £1,000 in gross income from self-employment during the tax year.
Were a partner in a business partnership.
Have certain untaxed income that needs to be declared.
Need to report capital gains through self assessment.
Need to pay the High Income Child Benefit Charge and aren't paying it through PAYE.
You might also need to submit a return if you've received rental income, foreign income, dividends or savings interest, depending on your circumstances.
What if I'm already employed?
Being employed doesn't automatically mean you won't need to complete a tax return.
For example, you might work full-time and also earn money from freelance projects, consulting or another small business.
Your employer will usually deduct tax from your salary through PAYE, but that doesn't necessarily cover your additional income.
What if I've only earned a little extra money?
The £1,000 trading allowance is particularly useful here.
If your total gross trading income is £1,000 or less during the tax year, you generally won't need to tell HMRC about that income, provided no exceptions apply.
If you earn more than £1,000, you may need to register for self assessment, even if your business expenses mean you've made very little profit.
Still not sure?
HMRC has an online tool to help you determine whether you need to complete a tax return.
And if you do need one, Returnly is here to make the process a little easier.
Need help with your tax return?
At Returnly, we prepare straightforward UK self assessment tax returns for a fixed fee of £199, including VAT.