Categories of Individuals Who Need to File UK Tax Return

Self assessment tax return in UK is a process of filling out your incomes and tax obligations either online to the HM Revenue & Customs (HMRC) website or manually by sending a UK tax form to the tax authorities. For those eligible, one needs to send the tax return manually by 31 October or online by 31 January of every year. Only specific categories of income earners need to fill out these returns. These categories are provided below.

Self Employed

Any resident or citizen of the UK who is self employed or is a member of a partnership is expected to fill out their self assessment UK tax form before the deadline.

Ministers, Directors of Companies, Trustees and Lloyd’s Members

Besides the self employed, ministers of any religious faith, any name or member of Lloyd’s and any director of a commercial company is also expected by law to submit their returns. However, directors of companies that are charitable (Non Profit) do not need to submit if they do not receive any form of allowance from the company. Trustees and personal representatives are also required to fill out their tax return.

Income from Property, Investments and Savings (Above a given limit)

Individuals who receive income from savings or investments of any kind in excess of £10,000 are also required to file out the returns for UK tax. This applies whether the incomes are taxed or not. However, if the incomes from your savings and investments are not taxed at all, then you will need to fill out your returns for amounts above £2,500. Individuals with a net income from property in excess of £2,500 will also need to file returns. Anyone receiving income from annual trust or from a settlement will also file out returns for UK tax if tax is still due even if they are just receivers and not beneficiaries of such income. Anyone receiving income from a deceased person on which tax is still due is also mandated to file returns before deadlines whether or not they are the final beneficiary of this income.

Individuals above 65 Years

Individuals who are over the age of 65 years old and receive a reduced allowance because you are over 65, you will need to fill out your tax return. However, you will need to do so if your annual income is in excess of £22,900 for the 2010 to 2011 financial year. The limits keep changing and you will need to confirm with the HMRC Self Assessment Helpline for the applicable rates in a given year. Furthermore, if your taxes are paid and straight forward, you do not need to file the returns. You can confirm with the helpline for your specific situation.

Income From Abroad or For individuals Working Abroad

Individuals receiving foreign income that is eligible for UK tax require to fill out the tax form for returns. This also applies to non residents making income from UK, Non domicile individuals claiming ‘remittance basis’ and individuals with dual citizenship of which UK is one of the citizenship.

Certain Circumstances for Employment Income

Individuals who earn income in excess of £100,000 will also need to fill out their tax return whether their income is straightforward or not. This also applies to individuals who claim non-common reliefs such as relief on Venture Capital Trusts or relief on Enterprise Investment Scheme. Individuals also seeking claims for professional subscriptions in excess of £2,500 are also required to file their returns. Individuals who earn employment income and owe tax at the end of a given year may require to fill out a tax return if they do not wish to or cannot pay this tax through their tax code.

Capital Gain Tax

If you owe UK tax from capital gains from sale of assets, you are required to also fill out the tax for for returns.