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Self-Assessment Checklist: Who Needs to Submit a Tax Return in the UK

 Tax season in the United Kingdom can be an intricate affair, especially for those navigating the Self-Assessment system for the first time. Understanding who needs to submit a tax return in the UK is fundamental—not only for compliance but also to avoid unnecessary penalties. While many individuals pay their tax automatically through the PAYE (Pay As You Earn) system, a substantial segment of the population is legally required to file a Self-Assessment tax return.

This checklist breaks down the various categories of people who must submit a tax return in the UK, offering clarity and guidance in an otherwise labyrinthine process.

1. Self-Employed Individuals and Sole Traders

If you work for yourself, whether as a full-time freelancer or a side hustler selling handmade crafts online, you're expected to submit a tax return in the UK if you earned more than £1,000 in a tax year. This threshold includes all income before expenses and deductions. Even if your earnings are modest, HMRC still wants its due share.

Self Assessment Tax Return

 2. Partners in a Business Partnership

If you’re in a partnership, regardless of the business’s profitability, you are required to submit a tax return in the UK. In addition to your personal tax return, the partnership itself must file a separate Partnership Tax Return detailing income, expenses, and how profits are divided.

Partnerships carry a unique tax structure, and it’s vital for all partners to coordinate their filings to ensure consistency and compliance.

3. Company Directors

Directors of limited companies often find themselves obliged to submit a tax return in the UK, particularly if they receive income not taxed at source through PAYE. This might include dividends, rental income, or capital gains.

While salaried directors paid exclusively through PAYE may be exempt in some cases, it’s prudent to consult with an accountant if your financial portfolio is diversified.

4. Individuals with Untaxed Income

Any individual receiving untaxed income, such as rental earnings, dividends, foreign income, or even substantial interest from savings, may need to submit a tax return in the UK. This applies if your untaxed income exceeds certain thresholds or if your tax affairs are complex and require reconciliation by HMRC.

Examples include:

  • Renting out property (buy-to-let landlords).

  • Earning foreign dividends or pensions.

  • Profiting from cryptocurrency trading.

5. High Earners Over £100,000


Those with an annual income exceeding £100,000 are automatically required to submit a tax return in the UK, even if they’re fully employed and taxed under PAYE. This rule exists to ensure that all income is taxed correctly and to adjust the personal allowance, which tapers off once earnings surpass £100,000.
6. Recipients of Child Benefit with High Income

If you or your partner receives Child Benefit and either of you earns more than £50,000 annually, the High Income Child Benefit Charge (HICBC) comes into play. In this scenario, the higher earner must submit a tax return in the UK to pay the required tax on the benefit received.

Failing to register can result in hefty penalties and backdated tax demands.

7. Claimants of Tax Reliefs and Allowances

You might be required to submit a tax return in the UK if you’re claiming certain tax reliefs—like those on pension contributions, charity donations, or job-related expenses exceeding £2,500. Although these may reduce your tax liability, they still require HMRC’s review and approval via the Self-Assessment system.
8. Investors and Shareholders

Individuals who earn profits through investments, capital gains, or shareholding dividends must often submit a tax return in the UK. If your gains surpass the Capital Gains Tax allowance or your dividend income exceeds the tax-free threshold, a Self-Assessment return becomes mandatory.

Even if your broker or platform handles tax at the source, personal tax responsibility remains yours.

9. Expats and Non-Residents


Non-residents or UK expats may need to submit a tax return in the UK if they earn income from UK-based sources—such as rental properties or investments. Similarly, individuals claiming the remittance basis must file a return to report income brought into the UK.

Tax residency rules are multifaceted, and professional advice is often warranted in these cases to avoid double taxation or incorrect filings.

10. Trustees and Personal Representatives


If you act as a trustee of a trust or the executor of a deceased person’s estate, HMRC may require you to submit a tax return in the UK on behalf of the trust or estate. This ensures that all income, capital gains, and distributions are properly recorded and taxed.
11. HMRC Notification

Even if you don’t fall into the categories above, HMRC may send you a notice to file a return. Once notified, you are legally obligated to submit a tax return in the UK, even if you think you owe no tax. Ignoring this notice can lead to automatic penalties.
12. Crypto Investors and Digital Asset Holders

With HMRC intensifying scrutiny on digital currencies, anyone profiting from cryptocurrency—whether through trading, mining, or staking—may need to submit a tax return in the UK. Capital gains and miscellaneous income derived from crypto must be declared and taxed appropriately.
The volatile nature of digital assets doesn’t exempt them from tax liabilities, making accurate recordkeeping essential.

13. Artists, Influencers, and Side Hustlers

With the rise of the gig economy, many people now earn supplementary income from platforms like Etsy, YouTube, or Instagram. If your income from side gigs exceeds £1,000, you're expected to submit a tax return in the UK under the Trading Allowance rule.

Whether you’re crafting artisanal jewellery or monetising content, tax obligations still apply.

Penalties for Failing to File

Neglecting to submit a tax return in the UK when required can trigger automatic fines. HMRC imposes:

  • A £100 fixed penalty for late submission.

  • Daily penalties after three months.

  • Interest and surcharges for unpaid tax.

These penalties compound over time and can escalate into thousands of pounds, making timely submission imperative.

Final Thoughts: Precision Is Key

Filing a Self-Assessment tax return isn’t just about ticking boxes; it’s about accurately reflecting your financial reality. Each person’s tax situation is nuanced, and understanding whether you need to submit a tax return in the UK is the first step toward fiscal responsibility.

The landscape of taxation is ever-evolving, with HMRC frequently updating thresholds, allowances, and filing obligations. Keeping abreast of these changes and staying organised throughout the year will make your Self-Assessment journey considerably less daunting.

For most, the annual tax return is a necessary chore. For the unprepared, however, it can become a legal and financial nightmare. Don’t wait until the deadline looms—determine early whether you need to submit a tax return in the UK, and take proactive steps to get it done right.

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