Do I need to submit a tax return to HMRC?

Do I need to submit a tax return to HMRC?

There are three scenarios where you may need to submit a Tax return. 


1) You have untaxed income. This could be, for example, dividends from your company, sole trade income or rental profits. You should also consider the high income child benefit  charge if you receive this and earn over £50k


2) You have a total employment income above £150,000 (this used to be £100k before 2023/24)


3) HMRC have asked you to submit one


Despite the raised bar of £150,000, Sherwin Currid recommends that anyone with income above £100,000, especially if they make pension contributions, or gift aid donations, or any other income, continue to prepare a tax return. For additional rate tax payers any bank interest they receive will be subject to tax at 45%, as there are no tax free allowances for bank interest for the additional rate band. There is a risk that some taxpayers could miss out on tax reliefs ordinarily only picked up via self-assessment. 

Company directors

Becoming a company director does not mean you necessarily need to register for self-assessment and submit a personal tax return. HMRC like directors to do tax returns because it means they are more likely to pick up any untaxed income, but nothing in the law makes it compulsory. However, we would expect most company directors will need to file a personal tax return.


If you still need to register for self-assessment, you should discuss this with your accountant before doing so here.


I don't have any untaxed income - why do HMRC keep asking for a return?

If you no longer have any income outside PAYE, you can ask HMRC to stop requesting you to do a tax return, providing your total income is below £150k and you have no sources of untaxed income. 


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