The answer to this is quite simple: if one is issued to you, then yes; if one is not issued to you, then no.
Do I have to notify HMRC?
You have an obligation to notify HMRC if you haven’t received a Tax Return but you do have a tax liability. This could be because:
- You have a new source of income, for example self-employment or rental income
- You received interest above the personal savings allowance of £500 for basic-rate payers and £1,000 for higher-rate payers
- You received dividends above the tax free dividend allowance of £2,000
- You or your partner claimed child benefit and you have income of more than £50,000
- You sold some investments or property and received more than you originally paid
You might choose to notify HMRC if you wish to claim a loss or other relief. This could be because:
- You sold some investments or property and received less than you originally paid (this loss can be carried forward and set against future gains)
- You have started a self-employment business and made losses (these losses can be set off against other income or carried forward against future profits)
- You have to buy equipment to use for employment purposes (you may be able to claim capital allowances to reduce your tax liability)
- You want to make a claim for deductible expenses of employment such as mileage if your employer pays less than 45p per mile
- You want to make a claim for employee allowances for specialist or protective clothing. HMRC has a list of occupations and the available flat rate allowances here
If you have overpaid tax during the year, for example because your PAYE code was incorrect, you should also notify HMRC or complete a tax repayment form R40. HMRC has more information about this here.
What about company directors?
You do not have to compete a Tax Return just by virtue of being a company director if there is no other reason to do so.
If have no chargeablity to income or capital gains tax and are not issued with a Tax Return then you have no obligation at all to complete one, or to register with HMRC.
What if I’m not sure?
If you are not sure whether you have an obligation to notify HMRC, or whether you could claim any additional allowances or a repayment of tax, please ask.
HMRC have a tool on their website to check whether you need to send a Tax Return: click here.
Or see my contact page for details of how to get in touch with me.
