Self Assessment
HMRC only require a Self-Assessment tax return to be completed if certain criteria are met. These include:
- being self employed, with of trading income of over £1,000
- having foreign income, such as savings or investment income or a foreign pension
- having rental income
- Receiving over £10,000 in investment income in the year.
You can find the full list of Self Assessment criteria on the HMRC website.
It is your responsibility to register for Self Assessment if you meet the criteria. But HMRC can also decide whether they need you to complete a Self Assessment return. If HMRC have sent you a Self Assessment return and you don’t think you need to fill it out, contact HMRC and ask them to withdraw it. Unless the return is withdrawn by HMRC you will have to submit the return by the due date, even if there is no income to report, and penalties for failing to file the return by the due date will still apply.
Find out more in our Self Assessment guide.
Simple Assessment
HMRC will send you a Simple Assessment (form PA302) if you:
- Owe tax on a pension or other income that can’t be collected through PAYE (for example by your employer or pension provider), and
- Don’t need to complete a full Self Assessment
The Simple Assessment (form PA302) tells you how much tax you owe and when to pay it.
If you don’t agree with HMRC figures on the PA302, you have 60 days to notify them.
You can’t request a Simple Assessment. HMRC decide if you’re eligible for Simple Assessment on an annual basis depending on your income and tax liability.
Under Simple Assessment you don’t have to fill in any forms, but you do need to let HMRC know if they have not included all your income in their calculation.
Find out more about Simple Assessment.