Do I need to complete a personal tax return?
A self-assessment personal tax return is completed by individuals on an annual basis with the personal tax year covering 6th April to 5th April.
In general, an individual will complete a personal tax return because their income has not been taxed at source via PAYE.
There are several circumstances that may require you to complete a personal self-assessment tax return. These include;
Self-employment.
If you are self-employed as a sole trader or in an unincorporated business partnership, you will generally need to file a tax return. This includes individuals who earn income through freelancing, consulting or running their own business.
High-income earners.
If your income exceeds £100,000 per annum, you will need to file a tax return due to the tapering of the personal allowance on earnings in excess of £100,000 per annum. This also applies to individuals whose income is taxed at source, such as through PAYE by their employer.
Dividends.
If you are a limited company shareholder who receives dividends above the personal allowance, you will complete a personal tax return to declare this income and calculate the dividend tax that is due.
Additional sources of income.
If you have income from sources other than PAYE employment, such as rental income, interest from investments, or capital gains from selling assets like property or stocks, you may need to declare these on a personal tax return.
Claiming tax reliefs or allowances.
If you want to claim certain tax reliefs or allowances, such as expenses related to self-employment, pension contributions, charitable donations, or tax relief for work-related expenses, you may need to complete a personal tax return.
It's important to note that these are general circumstances, and there may be other factors specific to your situation that determine whether or not you need to complete a personal tax return.
To ensure accuracy and compliance, it is advisable to consult with an accountant or visit the official HMRC website for the most up to date and specific information.
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