Who Needs to Complete a Tax Return? - 5th October Registration Deadline


With the 5th October deadline fast approaching to register for tax self-assessment, Mitchell Charlesworth's tax team are regularly asked who must complete a tax return. As a result, our tax experts have put together the following article which outlines who must complete a tax return and register by the 5th October accordingly:
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1. You are Self-Employed:

If you are self employed then you must complete a tax return for each year you have been in self-employment or have been a partner in a partnership.

Even if you make a loss or if you have decided to stop trading at the end of the year, you must complete a tax return.

This guide from HMRC will help you to work out if you are employed or self-employed

2. You are a company director, a name or member of Lloyd's, or a minister:

The caveat to this rule is if you are a director of a non-profit organisation (charity) and do not receive any payments or benefits.

3. Your annual income is £100,000 or more:

Should your total income be over £100,000 then must complete a tax return as you may have higher or additional rate tax to pay that hasn't been collected through your tax code.

4. You have income from savings, investment or property:

You will need to complete a tax return if income you receive consists of:

  • £10,000 or more from taxed savings and investments
  • £2,500 or more from untaxed savings and investments
  • £10,000 or more from property (before deducting allowable expenses)
  • £2,500 or more from property (after deducting allowable expenses)

However, if you are an employee or a pensioner and already pay tax through a PAYE code, you may be able to arrange for the tax that you owe on income, such as savings and property, to be collected through your code number.

If you do not pay tax through a PAYE code then you will need to complete a tax return if:

  • you have income to declare, for example income from savings, trusts or abroad, rental income from land or property
  • your total income exceeds your total allowances and reliefs
  • you have tax to pay on this income

5. You need to claim expenses or reliefs:

If you are employed and want to claim expenses or professional subscriptions of £2,500 or more, you'll need to complete a tax return.

By way of example, you can only claim certain reliefs, such as Enterprise Investment Scheme relief or relief on Venture Capital Trusts, by completing a tax return.

6. You or your partner receive Child Benefit and your income is over £50,000:

Individuals should be completing tax returns if they (or their partner) earn over £50,000, have received Child Benefit payments since 7 January 2013 and are the higher earner in a couple.

7. You get income from overseas:

If you have any foreign income that is liable to UK tax then you must complete a tax return.

This guide from HMRC provides more information about tax on foreign savings and investments.

8. You have income from trusts, settlements and estates:

You must complete a tax return if you receive income (or are treated as receiving income) on which tax is still due. By way of example from: annual trusts or settlements or the estate of a deceased person

9. You have Capital Gains Tax to pay

If you have Capital Gains Tax to pay then you must complete a tax return. You will have capital gains tax to pay if (for example) you have sold, given away or otherwise disposed of an asset such as a holiday home or shares.

Find out more from HMRC about tax returns and Capital Gains Tax here.

10. You have lived or worked abroad or are not domiciled in the UK

You may need to complete a tax return if you are:

  • not resident in the UK
  • not ordinarily resident in the UK
  • not domiciled in the UK and claim the 'remittance basis'
  • dual resident of the UK and another country

However, residency is a complex issue and requires specialist advice. You are urged to contact our tax team for further information in this regard.

11. You are a trustee

If you are a trustee or personal representative (including someone who manages the tax affairs of a deceased person) or a trustee of certain pension schemes then you must complete a tax return.

Contact our Tax Team:

For more information about Mitchell Charlesworth's tax services or for help with your personal tax return, contact your local tax expert. Alternatively, complete a quick enquiry form and we will get back to you.

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