You should file a UK self-assessment return if any of the following factors apply:
- You have capital gains, income or “chargeability” to report.
- HMRC has sent you a notice to file a return.
- You wish to claim a refund or make a claim for relief.
You have capital gains, income or “chargeability” to report.
You must notify HMRC of “chargeability to tax,” and you will then be sent a notice to file your tax return. If HMRC has not sent you a notice to file but you know that you have income, gains or a charge to report, you should file a tax return.
There are late notification penalties if you fail to notify chargeability. You must notify HMRC if:
- You have made a capital gain.
- You have employment income that is not taxed under PAYE.
- You have dividend income and further tax to pay on that income.
- You are liable to the higher income child benefit charge.
- You have any other untaxed income or are liable to tax at higher rates. For example:
- Your PAYE code has been wrongly calculated and you have underpaid tax
- You have unreported taxable employment benefits
- You have income of more than £100,000 and this restricts your personal allowance
- You have income from self-employment or from a partnership that exceeds the £1,000 trading allowance
- You receive untaxed rental income
- You receive foreign income
- You are a non-resident landlord receiving rental income.
HMRC has sent you a notice to file a return.
If HMRC sends you a notice to file a tax return, you must do so, otherwise you will receive a late filing penalty even if you have no income to report.
If you are a director the following three points are relevant:
- HMRC generally set up a self-assessment record for a new director once a company is formed. This information is often provided via Companies House.
- If you are a non-resident director of a UK company, HMRC will usually ask you to file a return every year even if you draw no remuneration.
- You do not automatically require a PAYE scheme; this is only necessary if you are paying renumeration subject to PAYE, or if your employer provides employment benefits or pays you employment expenses.
You wish to claim a refund or make a claim for relief.
You may register for self-assessment and file a tax return in order to:
- Claim a relief or allowance that must be made on a return.
- Claim employment expenses or allowances not received via your employer or PAYE coding notice.
- Notify your “residence status or domicile.”
Still not sure? We’re always on hand to offer advice on your self-assessment issues or any other tax matters. Give us a call on 020 8530 0720 or email firstname.lastname@example.org.