How Do I Know if I Need to File a Tax Return?

With tax deadlines creeping up after the New Year, it’s common to ask, “Do I even need to file a tax return?” The answer isn’t always a simple yes or no. If your income has changed, you’ve started working for yourself, or made money in new ways, it might be something you need to do. It’s easy to assume everything is sorted through PAYE, but unexpected details can mean you're supposed to file. Knowing when to act can save worry and help avoid problems down the road.

Understanding if a return is needed is the first step in keeping things simple with your taxes. That’s where we come in. We’re here to help clear up when filing is necessary, especially for those looking for local support from personal tax accountants you can go in and talk to.

Who usually needs to file a tax return?

Some people need to send in a return every year based on how they earn money. It’s not just for the self-employed or those with high income. You may need to file if any of these apply:

• You are self-employed earning more than £1,000,

• partners in a business partnership,

• individuals wanting to claim certain income tax or capital gains tax reliefs,

• landlords earning income from letting property,

• earnings from tips and commission,

• income received from savings, investments and dividends,

• income from an overseas source, and

• some individuals receiving child benefit with income exceeding £60,000.

• you are non-resident and you have taxable income in the UK. This includes non-UK resident landlords.

For example if you receive investment income, like dividends or interest, and it hasn’t been taxed, or if you get tips or commission that don’t go through PAYE. You might even need to file if you’re a business partner or someone receiving income from overseas.

If you receive income from multiple sources, your tax situation can quickly become more complicated. People sometimes are not sure if their freelance work on the side should be reported, especially if it was only a small job or a one-off arrangement. Even if it seems minor, HMRC rules expect accurate reporting. Anyone with income not taxed automatically under PAYE should consider whether that income triggers a filing requirement. Double-check whether you have side incomes that go beyond the main job, such as selling items for profit, working as a contractor, or cash earned from odd jobs.

Situations Where You Might Be Unsure

Not every situation is black and white. Perhaps you only worked part of the year, or did some freelance jobs on the side. Some people get caught out because they:

• Have earnings from another country

• Want to claim back money through certain forms of tax relief

• Find out they didn’t pay enough tax in earlier years

Even something like giving to charity through Gift Aid can be a reason to file if your earnings put you in a higher tax bracket. It’s easy to assume it's all handled, but HMRC won’t always notify you if something changes.

For many people, unusual income or small changes escape notice until a problem crops up. The rules are not always clear about what counts as taxable income, particularly if you’re dealing with gifts, family loans, or non-UK sources. If you have a rental property that only earns rent for part of the year, or you let out a spare room for a few months, those amounts may still need to be reported. Similarly, student loans or bursaries are often not taxable, but if you start earning on top of them, that extra money can tip you into needing to file.

Inheritance, redundancy payments, or one-off windfalls may spark confusion, and it’s wise to ask questions if you’re uncertain whether those sums require disclosure. Sometimes you might feel that your circumstances are unique, but HMRC has guidelines for more of these scenarios than people realise.

Changes That Affect Your Tax Situation

Life has a way of shifting around your tax needs. You might have started a new job, become self-employed, or taken time off work for any number of reasons. These kinds of changes matter. So do life events like:

• Getting married or divorced

• Moving to a different part of the country

• Switching from being employed to self-employed or part-time

Changes in your status can quietly affect your tax setup behind the scenes. While it doesn’t always mean a return is needed, it does mean it’s worth checking. The risk of missing something small can lead to penalties or delays later.

Sometimes changes are temporary, such as taking parental leave or an extended break from work, but they may still influence your overall taxable income. Switching careers, taking on short term contracts, or entering retirement can all create new tax obligations that you may not expect. If you begin to receive pension payments, workplace benefits in kind, or share-based rewards, your tax code might shift, and this can trigger the need for a filing.

If you relocate for work, take a sabbatical, or even start volunteering alongside a traditional job, it’s sensible to review your tax status at the start of each tax year. Keeping a personal record of employment history and significant changes lets you answer HMRC’s questions accurately.

How HMRC Lets You Know

Sometimes you’ll get a clear signal from HMRC. You might receive a letter called a “notice to file.” That’s HMRC’s way of saying they expect a tax return from you. If you don’t get a letter, that doesn’t mean you’re automatically off the hook. You can:

• Use HMRC’s online checking tool

• Log in to your personal tax account to see if anything has been flagged

• Keep an eye on your email for digital notices

HMRC expects you to know your status. So even if a letter doesn’t arrive, you're still responsible for filing if needed.

Communication from HMRC is not always predictable. If you have previously filed a tax return, you are often set up in their system and will likely receive a notice each year. However, if your situation is new, such as transitioning from employment to self-employment or taking on property income for the first time, you may not get an immediate notification. Don’t rely entirely on HMRC to prompt you. Being proactive in checking your obligations is important.

Digital services have made it easier to monitor your tax account, and you can set up reminders or request clarification through the government gateway. The paper letters are still used, but more engagement is moving online, and sometimes details can be missed in email filters or forgotten inboxes.

Your Next Step Towards Clarity

Tax rules aren’t always crystal clear. The penalties for getting it wrong can last far beyond January 31st. If your work or income changed this year, or if something just feels off about your current tax routine, that’s a signal to stop and check in.

We always tell clients that it’s better to ask than to assume. Filing late or forgetting to file when required can lead to stress that’s easy to avoid. Getting support from personal tax accountants gives you a clearer path forward and lets you focus more on your daily life instead of second-guessing the tax calendar.

Before making your next tax decision, it’s worth running through a simple checklist. Ask yourself whether you started a new job, picked up a second income, began renting a room, or received payments from any source that wasn’t taxed directly. If any apply, checking with someone experienced can save you time and worry.

It’s a smart move to check your tax paperwork before each new year begins, especially if you know life changes are happening soon. Simple reviews each year can prevent missed deadlines and penalties, and you can catch errors before they turn into bigger issues.

Why ABMV Can Help You With Your Tax Return

If you are not sure about your tax situation, ABMV offers a dedicated personal tax service for individuals and families, whether you are employed, self-employed, or have more complex tax needs. The team is fully qualified and registered, assuring you that your affairs will be handled correctly. ABMV can deal with HMRC directly on your behalf, offer proactive advice on allowable reliefs, and provide bespoke support for all aspects of self-assessment.

Many people across Kent find that tax rules can shift when income changes, new earnings come in, or life events happen. When things are unclear, getting help from trusted personal tax accountants brings peace of mind and ensures nothing gets missed. Give ABMV a call and let’s get your tax sorted before any deadlines catch you out.