Can I stay outside the Self Assessment Regime?
HMRC have recently been sending letters to taxpayers who no longer need to prepare and submit a Self Assessment Tax Return. In the letter, it says that if their circumstances change, they may well need to submit in the future.
That’s fine, but what might trigger that need? We’ll take a look below…
The table below shows a list of changes that may occur in your affairs to watch out for. It’s not meant to be exhaustive, but simply to capture the most popular triggers that may either bring you into the Self Assessment Regime for the first time, or draw you back into it if you’ve been lucky enough to escape for a while.
When considering whether you need to submit a Tax Return or not, you’ll need to bear in mind whether you have previously been part of the Self Assessment regime or not. Those who have will, in some cases, have different trigger levels than anyone who is new to register, so please be careful that you’re checking the correct column.
It’s important to note that these circumstances are based on current HMRC guidelines. Be aware that tax regulations can change, and it’s always advisable to check with us if there’s any doubt about the need to file a self assessment tax return.
| Trigger | New Registration Limit | Returner’s Registration Limit |
|---|---|---|
| Self-employment income exceeding: | £1,000 | £1,000 |
| Untaxed income exceeding: | £2,500 | £1,000 |
| Income from savings or investments exceeding: | £10,000 | £1,000 |
| Dividend income exceeding: | £10,000 | £500 |
| Becoming a new partner in a business partnership | Yes | Yes |
| Earning income from property rental | Yes | Yes |
| Claiming tax relief for employment expenses of more than £2,500 | Yes | Yes |
| Needing to pay Capital Gains Tax | Yes | Yes |
| Receiving Child Benefit while the client or their partner has an income above £50,000 | Yes | Yes |
| Earning money from creating online content (if untaxed) | Yes | Yes |
| Carrying out activities as a serial entrepreneur with multiple directorships | Yes | Yes |
| Starting as a sole trader | Yes | Yes |
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