Self Assessment tax return – are you required to complete one?

It’s always worth knowing this to avoid being caught out by failing to submit a Self Assessment Tax Return. You could go for many years without meeting the criteria and then inadvertently hit it one year without realising.

So, according to HMRC, you are required to submit a self-assessment tax return in the last tax year if:

• You were self-employed (obviously you can deduct allowable expenses from your business income)
• You received £2,500 or more in untaxed income, for example from tips or from renting out a property
• Your income from savings or investments was £10,000 or more (Gross) before tax
• Your income from dividends from shares was £10,000 or more before tax
• You gained from selling things like shares, a second home or other chargeable assets (received more for it than you paid) and are required to pay Capital Gains Tax
• You were a company director –(unless it was for a non-profit organisation such as a charity and you didn’t receive any pay or benefits such as a company car)
• Your partner’s income was over £50,000 and one of you claimed Child Benefit
• You had taxable income from abroad
• You were living abroad but had a UK based income
• Your taxable income was over £150,000
• You were a trustee of a trust or a registered pension scheme
• You had a P800 from HMRC saying you didn’t pay enough tax last year – and you haven’t paid what you owe through your tax code or with a voluntary payment
• Your State Pension was more than your Personal Allowance and was your only source of income (unless you only started receiving your pension on or after 6 April 2016)

Certain other people may also need to submit a return (for example religious ministers or Lloyd’s underwriters).

Usually, you won’t need to worry if your only income is from your wages or pension.

If as it turns out you DO need to prepare and submit a return then you need to do this online at the latest by the end of 31 January. The return itself should cover income received in the tax year to the previous 5^th April, so 31 January 2025 would be the last date for HMRC to receive your SATR submission online for the year to 5th April 2024.

There are penalties for non-submission of returns by the due date(s), so if you are at all uncertain whether or not you should submit a return then get in contact with our experienced team at THP Chartered Accountants.

Please read our Tax Return services page here for more information on how we can help.