Obviously, one can understand that if you have additional income that generates additional tax, you will in most instances be required to file a tax return. There are instances however where, even if there is no additional tax due, you will have to file a tax return anyhow. Here are a few examples:
- You are a director of a Limited Company. Even if the company has not distributed any dividends, you are required to file a tax return every year.
- Your salary is greater than £100,000. You also need to file a tax return, even if tax has been taken at source through PAYE already.
- You are non domiciled in the UK and wish to claim the remittance basis of taxation.
- You have net property income of more than £2,500 or gross property income before expenses of more than £10,000.
- You are self employed and have started trading. Even if you still don't make a profit you will be required to file a tax return.
- You have claimed child benefit and either you or your partner earned more than 50,000 in the tax year.
- You made a capital gain below the tax-free allowance but the chargeable assets were worth more than 4 times the allowance (i.e. £45,200).
In any doubt, you can check the HMRC web site but in any case, don't assume anything as it can turn out to be a costly assumption... Also keep in mind, that even if you conclude that don't need to file a tax return and if HMRC decides otherwise (e.g. you have received a notice to file), you should comply!
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