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Do you need to complete a tax return?

Do you need to complete a tax return?

If you have relatively straightforward tax affairs and already pay tax through PAYE (Pay As You Earn) you probably won't need to complete a tax return. But if you have more complicated tax affairs - or income from several sources - you may need to complete one.

On this page:

Who needs to complete a tax return?
Types of tax return
Changes that might trigger the need to complete a return
Capital gains and tax returns
How to get a tax return
If you receive a tax return do you have to complete it?
Benefits of filing online
More useful links

Who needs to complete a tax return?

self-employed people (including members of a partnership)
company directors (except not for profit organisations)
ministers of religion (any faith)
people who get rent or income from land and property in the UK (but if you are an employee and this income is less than £2,500 a year a tax return may not be necessary)
people who have other untaxed income and the tax due on it cannot be collected though a PAYE tax code
people with taxable foreign income, even if they are not normally resident in the UK (this includes non-resident landlords)
anyone who receives annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income
trustees and personal representatives (including people who manage the tax affairs of deceased persons)
trustees of certain pension schemes
names or members of Lloyd's
employees and pensioners with more complex tax affairs - see below

Remember, if you have any income that is not taxed at source, like rents or freelance earnings, you may need to complete a tax return.

Employees and pensioners with complex tax affairs

You need to fill in a tax return if you:

have an annual income of £100,000 or more
have annual income from savings or investments of £10,000 or more (before tax)
claim against tax for expenses or professional subscriptions of £2,500 or more
have untaxed income of £2,500 or more (although some pensioners may be able to pay the tax on this through their PAYE tax code)
owe tax at the end of the year that cannot be collected through a change to your PAYE tax code for the following year

If you are 65 or over, HM Revenue & Customs may ask you to fill in a tax return so that they can work out how much higher personal allowance or Married Couple's Allowance you should get.

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Types of tax return

There are different forms and supplementary pages for different types of return - for example, there are specific returns for individuals and directors, partnerships and trusts. The form and supplementary pages you may need to complete will depend on your circumstances.

Completing your tax return (individuals and directors)

Tax returns if you're self-employed or in a partnership

Dealing with a tax return for someone who has died

Tax returns for trustees or charities

Tax returns for registered pension schemes

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Changes that might trigger the need to complete a return

Typical changes which may mean you need to complete a tax return for the first time as an individual might be:

large increase in income/windfall/large inheritance
selling a second property
selling shares
giving away money, investments or property

If you are liable to capital gains tax (CGT) for a tax year and you have not received a notice to make a tax return for that year you should ask for a tax return (see ‘How to get a tax return’ below). You should tell us by 5 October following the tax year to avoid being liable to a penalty for failing to notify any liability to CGT. (See ‘Capital gains and tax returns’ below.)

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Capital gains and tax returns

If you have received a notice to complete a tax return for 2007/08 you’ll need to fill in the Capital Gains Summary pages, if in that tax year:

you disposed of chargeable assets which were worth more than £36,800
losses are deducted from your chargeable gains, and your chargeable gains before losses and taper relief are more than £9,200
no losses are deducted and your taxable gains after taper relief are more than £9,200
you want to claim an allowable capital loss or make any other capital gains claim or election for the year

In working out if the assets you disposed of were worth more than £36,800 you should use the market value of any assets you gave away or sold for less than full value and ignore the following:

disposals of exempt assets such as private cars, shares held within Personal Equity Plans (PEPs) or Individual Savings Accounts (ISAs)
disposals of assets to your spouse or civil partner (if you were living together at some time during the tax year)
disposals of your own home where:
- it has been your only home during your ownership and was not used for any other purposes, for example, in your business
- the house has been used as your home throughout your ownership (but you can ignore the last three years of ownership) - the garden and grounds disposed of at the same time do not exceed half a hectare.

In working out your total chargeable gains include any gains attributed to you (for example, because you are a settlor or beneficiary of a trust, or in certain cases where you are a member of a non-resident company).

If you are not UK domiciled and are taxable on the remittance basis, in applying the limits above in respect of overseas assets, include the proceeds and gains which were remitted to the UK in the tax year.

Capital Gains Tax - learn more

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How to get a tax return

Tax returns are normally sent out in April each year (or a notice to fill in a tax return if you file online). If you've not received a tax return but think you should complete one contact your Tax Office. Your employer or pension provider will have details of this, or you can search online.

You can ask for a tax return at any time - for example, if you want to claim a particular tax relief or exemption. Depending on your circumstances you may be sent a short four-page return, or the full return.

Find your Tax Office

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If you receive a tax return do you have to complete it?

Yes - even if you pay all your tax through PAYE. A tax return is sometimes required for other reasons, for example to check if the correct tax has been paid overall. So if you are sent a tax return, you must fill it in and send it back even if you believe that you have no extra tax to pay.