Do I need to file a Self-Assessment Tax Return?

You should file a UK self-assessment return if any of the following factors apply:

  1. You have capital gains, income or “chargeability” to report.
  2. HMRC has sent you a notice to file a return.
  3. 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