What Is Self Assessment and Do I Need to File a Tax Return?

Do I Need to File a Tax Return?

If you earn money outside of a regular PAYE salary, you may need to complete a Self Assessment tax return (SATR) to report this income to HMRC. For many people, especially first-time filers, the process of reporting can feel confusing when navigating deadlines and compliance.

In this blog, we explain what Self Assessment is, who needs to file, and how to know if it applies to you.

What Is Self Assessment?

Self Assessment is the system HMRC uses to collect Income Tax, primarily from self employed individuals. Rather than tax being deducted at source through PAYE (which is handled by your employer), being self employed means that you are responsible for managing your own tax affairs. This includes:

• – Reporting your income to HMRC
• – Calculating how much tax you owe
• – Submitting an annual tax return
• – Paying any tax due by the relevant deadline

You do this by completing a SATR, which you usually submit online through your Self Assessment account.

Who Needs to File a Self Assessment Tax Return?

You may need to file a tax return if during the tax year, you fall under either one or more of the following:

Are self-employed or a sole trader

If you earned more than £1,000 from self-employment (before expenses), you must register for Self Assessment and file a return.

Earned income from freelance or from a “side hustle”

If you earned more than £1,000 from online selling, gig work, consulting, content creation, or any additional income outside your main job, you may need to file a return.

Receive rental income

If you rent out property, even just a room or a second property, you usually need to declare this income on your tax return.

Have untaxed income

This can include income from tips or commission, as well as foreign or investment income that you haven’t paid tax on at source.

Receive Child Benefit and earn over £60,000

You may need to file a tax return if you or your partner has an adjusted net income of over £60,000 and you receive Child Benefit. This is due to the High-Income Child Benefit Charge (HICBC).

Registering for Self Assessment

It is important to note that HMRC does not automatically register everyone for self assessment. Therefore, it is your responsibility to check whether Self Assessment applies to you, register and report any earnings to HMRC by the deadlines.

If you are unsure, speaking to an accountant can help you avoid mistakes, missed deadlines, or penalties.

When Is the Self Assessment Deadline?

HMRC requires you to submit your online SATR and pay any tax owed for the previous tax year by 31 January. Missing this deadline can result in an automatic £100 penalty, even if you do not owe any tax. Failing to submit a tax return when required can lead to late filing penalties and interest on unpaid tax

Need Help with Your Tax Return?

Whether you’re filing for the first time or want peace of mind that everything is done correctly, professional support makes the process simple and stress-free.

We can confirm whether you need to file, prepare and submit your tax return and ensure you are claiming all allowable expenses by the January deadline.