HMRC can choose to issue a notice to file a self-assessment return (under section 8 Taxes Management Act 1970) to any individual. Anyone receiving a notice to file a tax return must do so by the required deadline, or they may be liable to a late filing and/or a late payment penalty.

If an individual has received a notice to file and has no other taxable income to report, they can ask for the notice to file to be withdrawn. However, HMRC may decide that it still requires a return and if so, the

You need to do Self assessment Tax Return if:

  • You are working for yourself – you are self-employed
  • You are a partner in a partnership business;
  • You are a company director, except for directors of not-for-profit organisations who receive no pay;
  • You are a minister of religion – any faith or denomination;
  • You are a trustee or the executor of an estate.

You also might need to complete a Self Assessment tax return if:

  • You have untaxed income. This could be, for example, interest that is not taxed before it is paid to you or rental income.
  • You receive regular annual income from a trust or settlement, or you receive income from the estate of a deceased person and further tax is due;
  • You have taxable foreign income whether or not you are resident in the UK. This includes non-UK resident landlords.
  • You have income from savings and investments of £10,000 or more before tax;
  • You have annual income of £100,000 or more before tax;
  • You or your partner receives child benefit and your income is over £50,000.
  • You have tax due at the end of the year that cannot be collected via your PAYE coding notice in a later year;
  • Your untaxed income is £2,500 or more – but if you are a pensioner you may be able to pay your tax through your PAYE Coding Notice;
  • Your claim of expense are £2,500 or more;
  • You have capital gains where:
    • You have given away or sold assets worth £46,800 or more for 2018/19; or
    • You have a capital loss but your gains net of any losses are more than the annual exemption for 2018/19 of £11,700; or
    • You have no losses to claim but your gains are more than the annual exemption for 2018/19 of £11,700; or
    • You need to make any other capital gains tax claim or election for the year.

All of the above sound complicated. We at FFA keep up to date knowledge to assist any individual, business or private who may require our expert help.