Do I need to file a Self-assessment Tax Return

Most people who are employed are taxed at source through PAYE, but there are circumstances where you are required to file a self assessment.  These include:

• HMRC requests you to do so.  You will receive a notice from HMRC if they require you to file a self assessment
• If you have earnings that are not taxed at source.  These sources of income include:

1. Rental income over £2,500
2. Self employment income over £1,000
3. Investment profits over £12,000
4. Savings interest over £12,000
5. Dividend income over £12,000
6. Foreign income
7. Any other income over £2,500

• If you want to claim a tax rebate.  There are a variety of situations whereby you wish to claim for a rebate, including:

1. Working in the Construction industry using the CIS Scheme
2. If you have donated to charity
3. If you have unclaimed work expenses over £2,500
4. If you have made private pension contributions and you pay tax at the high rate

• In order to qualify for benefits.  You may need to prove that you are self employed in order to qualify for Maternity Allowance or Tax Free Childcare
• If you are a director of a limited company and you pay yourself dividends of £10,000 or greater
• There are many other less common circumstance when you may be required to file a self assessment, including:

1. You live outside of the UK and had income from the UK
2. You earn over £100,000
3. You are in a partnership
4. You are a trustee
5. You or your partner earn over £50,000 and you received Child Benefit
6. You are a name at Lloyds of London
7. You are a minister of religion