If you’re unsure who needs to do a self-assessment tax return in the UK, you’re not alone. Each year, thousands of individuals face penalties for not filing their tax return on time, simply because they didn’t realise they needed to. This comprehensive guide breaks down the current UK tax regulations for 2025 and explains exactly who is required to submit a self-assessment tax return, why it matters, and how you can avoid costly HMRC penalties.
At Quick Tax Returns, our goal is to make tax season simpler and stress-free. Backed by a team of qualified accountants and tax advisors, we help individuals and small businesses meet their obligations accurately and on time.
What Is a Self-Assessment Tax Return?
A Self-Assessment is HMRC’s way of collecting Income Tax from individuals whose tax is not automatically deducted from wages, pensions, or savings. The system requires you to declare all taxable income from various sources and pay any tax due by the annual deadline (31st January for online submissions).
Self-assessment applies to a wide range of people, and the requirement isn’t limited to self-employed individuals—contrary to popular belief.
Who Needs to Do a Self-Assessment Tax Return in 2025?
According to HMRC rules, you must file a Self-Assessment tax return if any of the following apply:
1. You’re Self-Employed or a Sole Trader
If you run your own business as a sole trader and earned more than £1,000 in the tax year (before expenses), you are required to complete a tax return. Even if your business isn’t profitable, you may still need to file to report a loss or to claim tax relief.
2. You’re a Partner in a Business Partnership
All partners in a business partnership must file a Self-Assessment tax return. Additionally, the partnership itself must submit a separate partnership tax return.
3. You’re a Company Director (Unless Employed and Paid via PAYE Only)
Company directors who receive income outside PAYE (e.g., dividends, rental income, or other sources) must submit a tax return. However, if you’re a director with no other income and your salary is entirely taxed via PAYE, you may be exempt—but it’s best to check with HMRC.
4. You Have Untaxed Income
This includes:
- Rental income from property
- Investment income (dividends, interest)
- Foreign income
- Freelance or side gig earnings
- Tips or commission
If any of these sources exceeded £1,000, you’ll need to report it.
5. You Earn Over £100,000 Annually
If your total income exceeds £100,000, you must file a self-assessment tax return—even if you’re fully employed and your taxes are already deducted via PAYE.
6. You or Your Partner Claim Child Benefit and One Earns Over £50,000
In this case, you are subject to the High-Income Child Benefit Charge. HMRC requires you to register for self-assessment and repay part or all of the benefit through your tax return.
7. You’ve Made Capital Gains
If you’ve sold shares, property, or other assets and made a capital gain, you may need to pay Capital Gains Tax (CGT). If your gains exceed the annual allowance, a tax return is mandatory.
8. You’ve Received Income from Abroad
UK residents with foreign income, including pensions, savings, or property, are often required to report this through a tax return, even if taxes were already paid in the foreign country.
9. You Want to Claim Tax Relief
Taxpayers who wish to claim:
- Expenses related to employment
- Donations to charities
- Pension contributions
- Investment losses
may need to do so through self-assessment.
10. You Were Asked by HMRC to Submit a Return
Sometimes HMRC will issue a Notice to File even if you don’t meet the usual criteria. Once this notice is issued, you’re legally obliged to file a return—even if you have no tax to pay.
Exemptions: Who Doesn’t Need to File a Tax Return?
You don’t need to submit a tax return if:
- You’re fully employed and earn under £100,000 with no additional income.
- Your only income is from a state or occupational pension under the threshold.
- You’ve earned less than £1,000 in trading or property income (covered by the trading allowance or property allowance).
Note: If you’re unsure, it’s safer to check with HMRC or a qualified tax advisor to avoid unexpected fines.
Deadlines to Remember for 2025
- 5 October 2025: Deadline to register for Self-Assessment if it’s your first time.
- 31 October 2025: Deadline to file paper returns.
- 31 January 2026: Final deadline to submit your online return and pay any tax owed.
Missing these dates could result in:
- A £100 instant fine (even if you owe no tax)
- Additional daily penalties
- Interest on late payments
Why It’s Important to File Accurately
Incorrect or late filing can result in severe penalties, an HMRC investigation, and unnecessary stress. That’s why working with professional tax agents like Quick Tax Returns can save you time and money.
Our team ensures:
- Accurate calculation of taxes
- Prompt submission to HMRC
- Help with allowable expense claims
- Full compliance with the latest tax laws
Common Self-Assessment Myths Debunked
“I’m employed, so I don’t need to file.”
If you have side income (e.g., freelancing, rental), you may still need to file.
“If I didn’t make a profit, I don’t have to report it.”
Wrong. HMRC expects all business activity to be reported, regardless of profit or loss.
“I’ll wait for HMRC to tell me.”
HMRC expects you to self-identify. If you wait for a notification, you might already be liable for a penalty.
How Quick Tax Returns Can Help
At Quick Tax Returns, we provide fast, affordable, and reliable assistance with:
- Registering for Self-Assessment
- Filing personal or business tax returns
- Resolving tax disputes or overdue returns
- Avoiding late penalties and maximizing tax relief
We’ve helped hundreds of UK residents and non-residents stay compliant with HMRC regulations.
Final Thoughts
Understanding who needs to do a Self-Assessment tax return is essential for avoiding fines, staying compliant, and managing your finances effectively. Whether you’re self-employed, earning rental income, or just unsure about your tax obligations, taking proactive steps can save you headaches later.
If you’re still uncertain or overwhelmed, let Quick Tax Returns handle it for you. Get in touch today to speak with one of our experienced advisors and ensure your tax return is submitted accurately and on time.
FAQs
Q: What happens if I miss the 31 January deadline?
A: You’ll incur a £100 penalty immediately, with daily penalties after three months.
Q: Can I file my tax return early?
A: Absolutely. Early filing helps you avoid the January rush and plan for your tax bill.
Q: Do I need to report income under £1,000?
A: Not usually, thanks to the trading/property allowance. But if HMRC has asked you to file, you must do so.
Need Help Filing Your Return?
Visit Quick Tax Returns today and book your free consultation. Let us take the stress out of tax season.
