“Do I have to file a self assessment tax return?”
It’s one of the most common questions we get. And honestly? The answer is annoyingly close to “it depends.” But stick with me, because I’m going to make this as painless as possible.
The good news for PAYE-only earners
If your income is taxed entirely through PAYE (meaning your employer handles everything), you do not need to file a self assessment tax return for the 2024-25 tax year.
Previously, anyone earning over £100,000 had to file regardless. That threshold was raised to £150,000 for 2023-24. And from April 2025 onwards? It’s been removed entirely for PAYE-only income. Progress!
But …you knew it was too good to be true! …just because everything has been paid and taxed via the PAYE system, it doesn’t mean that the taxman has got it right! A common reason for getting a chunky tax bill from the taxman is that you have earned over the £60k threshold (high income child benefit charge) or the £100k threshold (personal allowance restriction applies), or changed jobs during the year, but the taxman hasn’t updated your tax code. This can be very challenging. For example, going over £100k without a tax code update can cost an unexpected tax bill of up to £5k.
But wait… there’s more
Of course, there are exceptions. You will need to file a self assessment tax return if you:
- Have untaxed income like dividends, savings interest, or rental income
- Need to pay the High Income Child Benefit Charge (and aren’t using the PAYE service to declare this)
- Have capital gains, foreign income, or are self-employed
- Want to claim tax relief on pension contributions or Gift Aid that can’t go through your tax code
The thresholds that matter
Not all extra income triggers a tax return. Here’s when it does…
Savings interest: you need to file if you’ve earned more than:
- £1,000 (basic rate taxpayer)
- £500 (higher rate (40%) taxpayer)
- £0 (additional rate (45%) taxpayer – sorry, no allowance for you)
Dividends: if you’ve received more than £500, you’ll need to file, regardless of your tax band.
Rental income: if you’ve received more than £1,000, you’ll need to file, regardless of your tax band.
Self-employed income: if you’ve received more than £1,000, you’ll need to file, regardless of your tax band.
So… do you need to file?
If you’re a straightforward PAYE employee with no other income or claims to make, you’re probably fine. But if you’ve got dividends from a company, rental income, or self-employment on the side, then yes, you’ll need to submit a self assessment tax return.
And if you’re still not sure? That’s what we’re here for.
| Confused about whether you need to file? Or just want someone else to deal with the whole thing? Email us at [email protected], and we’ll sort it out for you – no stress, no jargon, just answers. |
