HM Revenue and Customs sends Tax Returns to everyone in the Self-Assessment system in April / May every year. If you receive a tax return you must complete it and return it to HMRC. This is so even if you are an employee and all your income is taxed under PAYE. If you have not received a tax return and think you need to complete one, please read the following information to check whether or not you need to complete a return and how to get one.

Do you need to complete a Tax Return?

Most taxpayers in the UK are taxed at source and so do not need to complete a Self Assessment Tax Return. ‘Taxed at source’ means that the money you receive has already had tax taken off, such as the wages you get from your employer when paid under the Pay As You Earn (PAYE) system, or UK bank interest taxed at source.

People who have income that has not been taxed at source, or not taxed at the correct rate, are required to inform HM Revenue & Customs about the income within 6 months of the end of the tax year in which the income is received (that is by 5 October following the end of the tax year). HMRC will then send a tax return for you to complete.

Such income would include, for example, rental income, self-employed income, savings income for higher rate taxpayers, and occasional untaxed income like eBay sales.

(If you are unsure if your eBay activity is taxable, see http://www.hmrc.gov.uk/guidance/selling/badges.htm).

You also need to tell HMRC about taxable chargeable gains – http://taxaid.org.uk/info/capital-gains-tax.

For more details, see http://www.hmrc.gov.uk/sa/need-tax-return.htm and http://www.hmrc.gov.uk/sa/introduction.htm

If you are an employee or pensioner and think you may have paid too little tax under PAYE, you will normally be able to resolve this without the need for tax returns. You should contact HMRC by phone on 0845 300 0627. It is best to resolve the matter without the issue of tax returns. This is becasue there are strict submission deadlines for tax returns and you could accidentally end up paying  penalties and interest in addition to any tax due.

Tax Refunds

If you are due a tax refund, completing a tax return is unlikely to be the best route. Instead, you should submit a repayment claim form, or, for overpayments of tax under PAYE, simply write to the tax office. See http://www.hmrc.gov.uk/incometax/refund-reclaim.htm.