Do I need to do a tax return?

Tax is baffling so you have probably asked yourself at some point do I need to do a tax return?

But what is a tax return? A large number of the UK population who are in work have their income taxed by their employer through a system called PAYE (Pay As You Earn).

If you don’t have your income taxed by an employer it’s likely you will need to complete a tax return at the end of each tax year.

What is a tax return?

A tax return is a document which is submitted by us to HMRC and includes information such as:

• How much money you earned
• The amount of tax you have already paid
• Any tax that might be due

Do I need to do a tax return?

A general rule if you are unsure if you need to submit a tax return, is if your income hasn’t been taxed you will need to submit a tax return.

For example a sole trader such as a builder or plumber would need to do a tax return as the pay they receive has not had income tax or National Insurance contributions deducted from it.

Other examples of sole traders that may need to do a tax return are:

• Carpenters and painters and decorators
• gardeners
• Graphic Designers
• Personal Trainers

If you are a company director and receive income in the form of dividends, you will need to complete a tax return.

Other examples where you may need to do a tax return is if you have income from property you own.

The gig economy has created a great opportunity for people to make extra money on the side. If that’s you, and are asking yourself do I need to do a tax return, below may help:

Ride Sharing: Uber drivers who make a living transporting customers to their destinations for payment will need to complete a tax return.

Selling goods Online: regularly making an income from selling goods on Facebook Market Place, Vinted or eBay means you have to tell HMRC about your income by submitting a tax return.

Parcel Delivery Drivers: if you work as a self-employed delivery driver for Amazon Flex, your pay hasn’t been taxed, so you have to complete a tax return.

Do I need to do a tax return if I work for Deliveroo, Uber Eats or Just Eat?

Yes, if you are working for Deliveroo, Uber Eats or Just Eat, you are classed as self-employed, meaning that you need to do a tax return. This is because the pay that you receive has not had taxes deducted from it.

A popular question we get asked a lot is: “Do I need to file a tax return if I work for Deliveroo, Uber Eats, and Just Eat, and I earn under £1000.00?”.

The answer is no, because in the UK you have a trading allowance of £1000.00, which means that if you earn under that amount HMRC does not need you to complete a tax return.

Once you earn over the £1000, you will need to complete yourself employed registration with HMRC and submit a tax return.

What is the deadline for doing a tax return?

The deadline for submitting your self-employed tax return is the 31st January after the tax year has closed on the 5th April. For example:

You have self-employed income to declare for the tax year from 6th April 2025 to 5th April 2026. You need to declare your self-employed income by 31st January 2027.

Who doesn’t need to do a tax return?

You do not need to complete a tax return if you are employed, as your employer will pay your tax through the PAYE system.

You also don’t need to do a tax return if you make less than £1000.

People who don’t have any extra income outside of the their normal job.

What happens if I don’t do a tax return?

If you fail to submit a self-assessment tax return to HMRC you may be fined the following:

Late filing penalties:

• £100 fixed penalty for not submitting a tax return after the deadline.
• If after 3 months, you still have not submitted a tax return you will be fined £10 per day (up to £900)
• After 6 months: £300 or 5% of tax due (dependant on which i higher)
• After 12 Months: a further £300 or 5% of tax due (whichever is higher)

late filling if tax is owed:

• 5% of unpaid tax after 30 days
• A further 5% of tax which is owed after 6 months
• Another 5% after 12 months
• Plus daily interest

I make less than the £12,570 personal allowance, do I need to do a tax return?

If you are self-employed and make over the £1000 trading allowance threshold, and earn under the £12,570 personal allowance in the UK, you must submit aself-assessment tax return.

People we work with often confuse the £12,570 personal allowance threshold as the point at which they need to compete their self-employed registration with HMRC and pay any tax that might be due.

This isn’t correct. The £12,570 personal allowance is the amount of income a self-employed person can earn before they start paying tax. For example:

If you earn over the £1000 trading allowance, and under £12,570 :

• You must complete your self-employed registration with HMRC
• Complete aSelf-Assessment Tax Return
• Pay any tax and National Insurance contributions

FAQs

Do HMRC tell you if you need to complete a tax return?

The short answer is sometimes, but ultimately it is your responsibility to know if you need to submit a tax return.

HMRC will usually contact you if:

• You have previously registered as self employed.
• You have submitted a self assessment tax return in the past.
• You are a company director.
• If HMRC suspect you have untaxed income for example working for delivery apps like Amazon Flex or have Uber Eats pay to declare.
• Your income is over £100,000
• You owe tax from a previous year.

If I earn less than £1000.00 do I need to do a tax return?

No, if you earn less than £1000 you do not need to submit a tax return to HMRC.

In the UK self-employed people has a trading allowance of £1000, which is a tax exemption meaning they do not have to declare income under £1000 to HMRC by submitting a tax return.

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