Do I need to complete a tax return?

Many people think that the Inland Revenue will ask them to complete a tax return if they are required to do one. This is not the case and the onus is on the tax payer to declare any income that they are required to on their tax return. Reading this article could help you to understand if you need to do a tax return and help you avoid a nasty fine from the Inland Revenue.

Who Needs to Do a Tax Return?

1. Self employed – If you are a member of a partnership you will always be requried to complete a tax return
2. Company directors – expect those of non-profits or charties
3. Ministers of religion
4. Foreign income that arises from overseas and is liable to UK tax.
5. Capital gains – If you have sold shares or property, for example, and need to pay tax.

Income Limits
If your income (for the following items) falls above these limits you will also need to do a tax return:

1. Savings and investments of £10,000 or more
2. untaxed savings and investments of £2,500 or more
3. property (before deducting allowable expenses) of £10,000 or more
4. property (after deducting allowable expenses) of £2,500 or more
5. The estate of a deceased person on which tax is still due
6. Total income of £100,000 or more you’ll need to complete a tax return.

Claiming Expenses

If you want to claim expenses such as mileage or washing a uniform you do not have to do a tax return because these can often be reclaimed through a change to your tax code and as a result you will receive the expense in your pay cheque directly. However expense claims of over £2,500 need to be done via a tax return.

If you have any questions about whether you need to do a tax return, leave a comment below and one of our team can provide an answer to your question.

Need to do a Tax Return?

6 comments

  1. lee says:

    do i have to fill in a self assessment if im unemployed

  2. Gerry says:

    Hi

    I have over 100,000 in savings which is not gaining any interest in the bank, as i am selfemployed do i have to declare this on my tax return;

    Thanks

  3. Johanna says:

    i want a tax return as from 2006-2010 is that possible? and if so, could you please send me forms

    • TaxFix says:

      Hi Johanna,

      Did you want to do a tax return or a tax rebate? You usually only do a tax return if you are self employed or there is a special reason to do one. You can complete a tax return here.

      If you are looking to claim a tax rebate because you think you might have overpaid tax, you can complete our online tax rebate application.

  4. James says:

    Hi

    I worked as an employee (not a director) for a UK based company for 5 years. I recently received a letter from Inland revenue with surcharges for not submitting a return for 2006/7. Can I appeal ? I did not even know I had to submit a return as I was just working for one company the entire time and they were paying my taxes

    • TaxFix says:

      Hi James,

      Did the Inland Revenue write to you back in 2006/2007 and ask you to do a tax return? They can ask you to do one, and you would need to do one then, but they would write to you first. I would contact your local tax office and ask them if they sent you a letter and what grounds you were meant to do one on.

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