Who Needs to File a Self-Assessment Tax Return in the UK?

self assessment tax return

Navigating the UK tax system might seem overwhelming, especially when it comes to determining if you need to file a self-assessment tax return.

self assessment tax return 2024

This is a key question for many individuals, from those running their own businesses to freelancers and people with multiple income sources.

Criteria for Filing

Not everyone has to file a self-assessment tax return; it’s something that mainly applies to these particular groups:

Self-Employed Individuals

If you’re a sole trader with an annual gross income over £1,000, you are required to file a tax return.

This threshold is part of the ‘trading allowance‘ but remember, it’s your gross income that counts, not your profit.

Company Directors

If you’re a director of a company (except for non-profit organisations where you don’t get paid), you’ll need to fill out a return too. This helps keep everything transparent and ensures your income and any benefits you get are taxed correctly.

Individuals with Multiple Sources of Income

This category includes anyone earning from rent, savings, investments, or income from abroad. Having different sources of income makes your taxes more complex, which is why filing a self-assessment is important.

High Earners

If your yearly earnings exceed £100,000, for example, from a combination of salary, bonuses, or other income, then filing a self-assessment tax return is essential.

Self assessment tax return filing

Special Circumstances

Some scenarios especially call for closer attention:

Child Benefit Recipients

If you or your partner receive Child Benefit and either of you has an annual income above a specific threshold, a self-assessment is required to calculate the High Income Child Benefit Charge.

IR35 Contractors

Freelancers or contractors falling under the IR35 rule need to file a tax return to demonstrate compliance with this legislation.

Benefits of filing a Self-Assessment Tax Return

Filing a self-assessment tax return is more than just a legal requirement; it’s a financial clarity tool. It helps in organising finances, identifying tax-saving opportunities, and ensuring compliance with HM Revenue & Customs (HMRC), thus avoiding potential penalties.

Self assessment tax return form

Understanding your obligations regarding self-assessment tax returns is crucial. It’s not just about compliance; it’s about gaining financial clarity and control.

How can Blue Spire help

At Blue Spire, we’re all about making taxes less mystifying and giving our clients the knowledge and support they need.

self assessment tax return

Whether you’re self-employed, a company director, or juggling multiple income streams, we’re here to guide you through your self-assessment journey with expertise and care.

If you have any questions about your accounts or need advice, please get in touch with our approachable team today.
Blue Spire

Blue Spire

We're Here For you

Let's talk

Our friendly team are ready to help you and answer any questions you may have. Just use the form below and get in touch.

Scroll to Top