You may fit into the criteria…

Most people in the UK do not need to file a tax return because they pay tax at source. However, see below to see a few situations when you do need to file a personal tax return. This is called a Self-Assessment.

1. If you have any untaxed income…

  • You’re self-employed and have earned more than £1,000.
  • You ear rental income over £1,000.
  • If you’ve made over £12,300 in profit from investments – usually property and stocks; gains from shares in an ISA doesn’t count. However, starting from April 2022, you’ll have to use HMRC’s Real Time Capital Gains Tax Service if you sell property instead of filling a tax return.
  • You earned more than £10,000 from savings interest – also not from savings within a cash ISA.
  • You receive more than £10,000 from dividends – also not from a stocks and shares ISA.
  • You’re earning foreign income.
  • You have any other sort of untaxed income more than £1,000.

2. HMRC tells you to submit one…

  • You received a P800 form.
  • HMRC sent you a notice to file a tax return.

3. You want to claim a tax refund…

  • You work in the construction industry through the CIS scheme.
  • You’ve made investments in SEIS or EIS eligible start-ups or VCT funds.
  • You’ve made donations to charity.
  • You made private pensions contributions as higher rate taxpayer.
  • You had work expenses over £1,000.

4. You qualify for benefits…

  • You need to prove you’re self-employed to claim Maternity Allowance or Tax-Free Childcare.
  • You want to make voluntary Class 2 National Insurance contributions or you qualify for benefits.

5. Other situations…

  • Your income is over £100,000 – in this case, it doesn’t matter if you have already paid tax via PAYE.
  • You live abroad and had income from the UK.
  • You claimed Child Benefit and your on your partner’s income was over £50,000.
  • You’re in a partnership.
  • You are a minister of any religion.
  • You are a trustee.
  • You’re a “name” at the Lloyd’s of London.

5. I’m a director of a limited company – do I still need to file a personal tax return?

  • Only if you paid yourself dividends over £10,000.
  • Otherwise, not anymore.
  • However, you still need to make sure that your company submits a corporate tax return.

Want to know more?

We understand knowing who needs to file a tax return can be confusing, that’s why we offer a free consultation to discuss your situation and the next steps! Our accountancy services are available nationwide, including: Accrington, Bamber Bridge, Buckshaw Village, Blackburn, Burnley, Chorley, Colne, Clitheroe, Darwen, Hurst Green, Lancaster, Lostock Hall, Longridge, Leyland, Penwortham, Preston, Skipton and the surrounding areas.

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