Do I Need To Submit a Tax Return?

Who Needs to File a Tax Return in the UK?

Every year in the UK, many people ask the same question: “Do I need to do a tax return this year?”

The answer depends on your income, employment status, and whether you've received any money that hasn’t already been taxed. It can get confusing quickly, which is why thousands of taxpayers accidentally miss filings or pay penalties each year.

At VIP Accounting Ltd, we help individuals, landlords, sole traders, and company directors across Benfleet, Essex and the UK understand whether they need to file — and make sure everything is submitted correctly and on time.

This guide explains who must complete a tax return, who usually doesn’t, and common situations that catch people out.

Who Must File a Self Assessment Tax Return

You need to file a tax return if, in the last tax year (6 April – 5 April), any of the following applied:

• You were self-employed and earned more than £1,000 (before expenses).

• You were a partner in a business partnership.

• You received rental income from a property.

• You received dividends, investment income, or savings interest above your allowances.

• You earned untaxed income of any kind.

• You made a taxable capital gain (such as selling shares or property that isn’t your main home).

• You received Child Benefit and your income exceeded the threshold for the High Income Child Benefit Charge.

• You have foreign income or income from abroad.

• HMRC sent you a notice telling you to file a return.

If HMRC instructs you to file a tax return, you must complete one even if you don’t owe any tax.

Who Usually Doesn’t Need to File a Return

Most people do not need to complete a Self Assessment tax return if:

• All income is taxed under PAYE through an employer or pension provider.

• You have no other taxable income (such as rental income, dividends, or capital gains).

• You do not run a side business or receive freelance/contract income.

If your finances are simple and everything is handled through PAYE, you generally won’t need to file — but this can change if you start earning money outside employment.

Common Situations That Catch People Out

Here are everyday scenarios where people unexpectedly need to file a tax return:

1. Side Hustles & Freelance Work

If you earn more than £1,000 in a tax year from any side activity — even casually — you may need to register for Self Assessment.

2. Rental Properties

Income from renting out a property (or even Airbnb) must be declared if it isn’t fully covered by allowances.

3. Dividend or Investment Income

If you receive dividends from a company, shares, or investments above your allowances, you must file a return.

4. Capital Gains

Selling property (not your main home), shares, or crypto may create a taxable gain that needs reporting.

5. Multiple Income Streams

If you earn from more than one source — for example, employment + freelance + dividends — you may fall into Self Assessment even if individual amounts are small.

What Happens If You Don’t File When You Should

Failing to file a return when required can result in:

• A £100 automatic fine

• Additional penalties after 3, 6, and 12 months

• Interest on unpaid tax

• Risk of HMRC compliance checks or investigations

Filing correctly and on time avoids unnecessary costs and stress.

What To Do If You’re Unsure

If you’re not certain whether you need to file a tax return, follow these steps:

1. Review all your types of income for the year.

2. Consider whether any of your income was untaxed.

3. Check whether you received dividends, rental income, or capital gains.

4. Look at whether you exceed any thresholds (for example, if you receive Child Benefit).

5. Ask an accountant if your situation is unclear — it’s easy to miss something HMRC expects you to declare.

How VIP Accounting Ltd Can Help

At VIP Accounting Ltd, we support clients across Benfleet, Essex and the UK with:

• Determining whether you must file a tax return

• Registering for Self Assessment

• Preparing and submitting your tax return

• Calculating income tax, dividend tax, rental profits, and capital gains

• Ensuring you claim all allowable reliefs

• Avoiding penalties and HMRC issues

If you'd like help with your Self Assessment, you can contact us here: https://www.vipaccounting.co.uk/contact-us

FAQs

Do I need to file a tax return if I am employed?

Usually no, unless you have other untaxed income (rental, freelance, dividends) or HMRC specifically asks you to file.

I only earned £500 from a side hustle — do I need to file?

If total untaxed income is under £1,000, you usually don’t need to file — but exceptions exist if you have other income streams.

Do I need to file if I receive dividends?

You must file a return if your dividend income exceeds the annual allowance or if HMRC instructs you to report it.

What if I miss the tax return deadline?

You’ll receive an immediate £100 fine, followed by increasing penalties and interest.

For full HMRC guidance, you can also visit the official Self Assessment page on GOV.UK: https://www.gov.uk/self-assessment-tax-returns

VIP Accounting Ltd is a strategic accounting and tax advisory firm based in Benfleet, Essex, supporting individuals, landlords, and businesses across the UK with Self Assessment, tax planning, accounting, and compliance. If you need tailored advice or help with your tax return, our team is here to guide you.