Contrary to what most persons may think, not everyone is required to file a federal tax return, and according to the HMRC, several persons who are not required to file a tax return do so because they are unaware of what’s required of them. Therefore in this article, we will be taking a look at persons who are required to file a tax return.

You are required to file a tax return for the previous year if:

• you earned over £1,000 from self-employment – this qualifies as your ‘trading allowance.’

• you earned over £2,500 from putting your property on rental

• you earned over £2,500 from untaxed income like commissions or tips

• your income from savings or investment was £10,000 or more before tax including money from bare trusts or interest in possession trusts.

• your earnings from dividends from shares was £10,000 or more before tax

• you earned profit from selling trading in shares, real estate or other capital assets and need to pay capital gains.

• your income (or partners) was over £50,000, and either of you claimed child benefits

• you had earnings from abroad which you needed to pay tax on

• your taxable income was over £10,000

• you were trustee or trust to a registered pension scheme or trust

• you did not pay enough in tax the previous year

• your state pension was greater than your personal allowance and was your only source of income

You would also be required to send in a tax return if you:

• need to prove you are self-employed

• want to make voluntary Class 2 National Insurance payments, so you qualify for benefits

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