If you earn income that is not fully taxed through PAYE, you may need to complete a Self Assessment tax return.
This can apply if you are self-employed, receive rental income, earn dividends or savings interest, have foreign income, make taxable capital gains or have another reason to report income to HMRC.
Not everyone needs to file a tax return. Whether you need to depends on your income, how you earn it and your personal circumstances.
This guide explains who may need to complete Self Assessment, when you need to register, the key 2025/26 deadlines and how Making Tax Digital for Income Tax may affect you.
Important: Tax rules can vary depending on your individual circumstances. If you are unsure whether you need to file, check your position with HMRC or speak to a qualified tax professional.
Do I Need to File a Self Assessment Tax Return?
You generally need to send a Self Assessment tax return if HMRC requires you to report income or tax that cannot be dealt with fully through PAYE or another system.
According to HMRC, you must send a tax return if, during the tax year, for example:
- You were self-employed as a sole trader and earned more than £1,000 in gross trading income.
- You were a partner in a business partnership.
- You had a Capital Gains Tax liability following the disposal of an asset.
- You had to pay the High Income Child Benefit Charge and did not pay it through PAYE.
- You received untaxed income such as rental income, savings interest or dividends.
- You received foreign income that needs to be reported in the UK.
- HMRC sent you a notice requiring you to submit a tax return.
These are not the only circumstances in which Self Assessment may apply. Your tax position can depend on the type and amount of income you receive.
Check whether you need to file a Self Assessment tax return on GOV.UK
Self Assessment at a Glance
Your circumstances | Do you usually need Self Assessment? |
Employee with only PAYE salary and no other reportable income | Usually no |
Sole trader with gross trading income above £1,000 | Generally, yes |
Member of a business partnership | Generally yes |
Rental/property income | Depends on the amount and circumstances |
Foreign income | Potentially |
Dividends and investment income | Potentially |
Taxable capital gains | Potentially |
HMRC has issued a notice to file | Generally yes, unless HMRC agrees you do not need to file |
If you are unsure, it is better to check your position rather than assume that you do not need to file.
Do I Need Self Assessment If I Am Employed?
Being employed does not automatically mean that you need to complete a tax return.
If you have one employment and your employer collects the correct amount of tax through PAYE, you will usually not need to file a Self Assessment tax return.
However, you may need to file if you have other income or tax liabilities.
Examples include:
- Rental income
- Self-employment income
- Dividends
- Savings interest
- Foreign income
- Taxable capital gains
- The High Income Child Benefit Charge
- Other income that cannot be dealt with through PAYE
If HMRC sends you a notice to file a tax return, do not simply ignore it. You should either complete the return or contact HMRC if you believe you do not need to file.
If you operate as a sole trader, the amount of your gross trading income is important.
If your gross trading income is more than £1,000 in a tax year, you will generally need to register for Self Assessment and report your income to HMRC.
Gross trading income means the total amount you receive before deducting allowable expenses or other tax reliefs.
Example
Suppose you earn £1,500 from freelance work during the tax year.
Even if you have business expenses, you first consider your gross trading income when determining whether you have exceeded the £1,000 threshold.
If your gross trading income is £1,000 or less, you may not need to tell HMRC, although there are exceptions and you may choose or be required to report the income in certain circumstances.
HMRC also provides a £1,000 trading allowance, subject to the applicable rules.
Do I Need to File a Tax Return for Rental Income?
Rental income can create a Self Assessment obligation, but the rules depend on the amount and circumstances.
HMRC provides a £1,000 property allowance for individuals with qualifying property income.
If your gross property income is £1,000 or less, you will generally not need to tell HMRC about it, unless another rule means you need to report it.
If your property income is above £1,000, the position becomes more complicated.
For example, HMRC distinguishes between income before allowable expenses and income after allowable expenses when determining whether Self Assessment reporting is required.
For personally owned property, HMRC currently states that rental income generally needs to be reported through Self Assessment if it is more than £2,500 after allowable expenses or £10,000 before allowable expenses.
You should take particular care if you:
- Own several rental properties
- Own property jointly
- Have overseas property
- Have significant property expenses
- Receive income from furnished holiday accommodation or other specialist arrangements
- Have mortgage finance costs
- Are a non-UK resident receiving UK property income
Property tax can become complicated quickly, so professional advice may be appropriate.
Do I Need to Declare Dividends?
Dividends can also affect whether you need to complete a tax return.
If you receive dividends from shares or investments, the amount you receive and your overall tax position determine whether they need to be reported and whether additional tax is due.
This is particularly relevant for:
- Company directors
- Business owners
- Shareholders
- Investors with significant dividend income
If you receive dividends alongside employment, property or other income, you should consider your overall tax position rather than looking at the dividend income in isolation.
What About Foreign Income?
UK residents may need to report foreign income and gains on their UK tax return, depending on their circumstances and the rules applicable to them.
Examples can include:
- Overseas rental income
- Foreign dividends
- Overseas interest
- Foreign employment or self-employment income
- Overseas pensions
- Certain foreign capital gains
International tax can involve additional rules, including tax treaties, foreign tax credits and, depending on your circumstances, the UK’s current rules for foreign income and gains.
If you have income or assets outside the UK, it is important to consider your UK tax residence and the nature of the overseas income or gains before completing your return.
Do Company Directors Need to Complete Self Assessment?
Being a company director does not automatically mean that you must file a Self Assessment tax return solely because you are a director.
However, directors may have other income or tax liabilities that require a return.
For example, you may need to consider:
- Dividends from your company
- Benefits in kind
- Other employment income
- Property income
- Capital gains
- Foreign income
- High Income Child Benefit Charge
If you are both a director and shareholder of your company, it is particularly important to consider your salary, dividends and other income together.
When Do I Need to Register for Self Assessment?
If you need to file a Self Assessment tax return for the first time, you generally need to tell HMRC by 5 October following the end of the relevant tax year.
For the 2025/26 tax year, the registration deadline for those who need to file for the first time is generally 5 October 2026.
Once registered, HMRC will provide the information you need to file your return, including your Unique Taxpayer Reference (UTR).
Do not leave registration until the last minute. You need time to register, receive your UTR, organise your records and prepare your tax return.
If you have missed the registration deadline, you should take action as soon as possible rather than waiting until the filing deadline.
What Are the Self-Assessment Deadlines for 2025/26?
The key deadlines for the 2025/26 tax year include:
Date | What you need to do |
5 October 2026 | Register for Self-Assessment if you need to file for the first time |
31 October 2026 | Deadline for paper tax returns |
30 December 2026 | Deadline for certain online returns if you want eligible tax collected through PAYE |
31 January 2027 | Deadline for online tax returns and payment of tax owed |
31 July 2027 | Second payment on account, where applicable |
The 2025/26 online return can be submitted from 6 April 2026, with the normal online filing deadline being 31 January 2027.
If you make payments on account, you may also have payment deadlines during the year.
The exact amount you need to pay and whether payments on account apply will depend on your circumstances.
What Happens If I Miss the Self Assessment Deadline?
If you are required to file a tax return and miss the deadline, HMRC can charge penalties.
Interest and additional penalties may also apply if tax is paid late.
For the 2025/26 tax year, the normal online filing and payment deadline is 31 January 2027.
If you think you have missed a deadline, do not delay. Filing and paying as soon as possible can help you understand your position and minimise further consequences.
Making Tax Digital and Self-Assessment
Making Tax Digital (MTD) for Income Tax is changing how some sole traders and landlords keep records and report income to HMRC.
MTD is being introduced in stages based on qualifying income from self-employment and property.
The current timetable is:
Previous tax year’s qualifying income | MTD start date |
More than £50,000 | 6 April 2026 |
More than £30,000 | 6 April 2027 |
More than £20,000 | 6 April 2028 |
Qualifying income is generally the total gross income from self-employment and property before expenses.
If MTD applies to you, you will generally need to:
- Keep digital records
- Use compatible software
- Send quarterly updates to HMRC
- Submit the relevant end-of-year tax information
- Pay your tax by the applicable deadline
Importantly, MTD does not simply replace your tax obligations with quarterly tax payments. HMRC confirms that taxpayers within MTD still need to submit the relevant tax return and pay tax by the normal deadline.
If you are a sole trader or landlord and your income is approaching the MTD thresholds, it is sensible to review your systems before the rules apply to you.
Do I Need an Accountant for Self-Assessment?
You do not have to use an accountant to complete your Self-Assessment tax return.
However, professional advice can be valuable where your tax affairs are more complicated.
An accountant can help with:
- Reviewing whether you need to file
- Registering for Self-Assessment
- Preparing accounts
- Calculating taxable income
- Identifying allowable expenses and reliefs
- Rental and property income
- Dividend income
- Capital gains
- Foreign income
- Tax planning
- Making Tax Digital
- Filing the return with HMRC
- Understanding your tax liability and payments on account
The benefit is not simply having someone submit a tax return. A professional review can help ensure that the information is complete, the appropriate reliefs are considered, and your wider tax position is properly understood.
How 3E’S Accountants Can Help
At 3E’S Accountants, we help individuals, business owners, landlords and professionals understand and manage their Self-Assessment obligations.
Our support can include reviewing your circumstances, preparing the necessary accounts and tax computations, completing your Self-Assessment return and submitting it to HMRC.
We can also assist where your affairs involve more than straightforward employment income, including:
- Self-employment
- Property and rental income
- Company directors and shareholders
- Dividends
- Capital gains
- Foreign income
- Multiple income sources
- Higher-income individuals
- Making Tax Digital requirements
If you are unsure whether you need to complete a Self Assessment, getting your position reviewed early can help you avoid unnecessary stress and reduce the risk of missing important deadlines.
Book a free consultation today to discuss your Self Assessment requirements.
Frequently Asked Questions
1. Do I need to do Self Assessment if I earn less than £1,000?
Not necessarily. If your gross trading income is £1,000 or less, you may not need to tell HMRC, although exceptions can apply. You should also consider whether you have other income or reasons to file a tax return.
2. Do I need Self Assessment if I have a full-time job?
Usually not if your employment income is fully taxed through PAYE and you have no other income or tax liabilities that need to be reported.
However, rental income, dividends, foreign income, capital gains or other circumstances may mean that you still need to file.
3. Do I need to file a tax return if I rent out a property?
You may need to. The answer depends on the amount and type of property income, allowable expenses and your wider circumstances.
HMRC currently states that personally owned rental property generally needs to be reported through Self Assessment where rental income exceeds the relevant reporting thresholds.
4. Do company directors need to complete a Self Assessment tax return?
Not automatically. Being a director alone does not necessarily mean you need to file. However, dividends, benefits, other income or specific tax liabilities may create a Self Assessment obligation.
5. Do I need to declare foreign income?
You may need to declare foreign income or gains if you are within the UK tax rules requiring them to be reported. The answer can depend on your residence status, the type of income and other circumstances.
6. What happens if I do not file a Self Assessment tax return?
If you are required to file and do not do so by the deadline, HMRC can impose penalties. Interest and further penalties may apply where tax is paid late.
7. Can I complete Self Assessment myself?
Yes. You can prepare and submit your own tax return through HMRC.
However, professional advice can be useful where you have property, self-employment, investments, foreign income, capital gains, dividends or other complex tax affairs.
8. When is the Self Assessment deadline for 2025/26?
The normal deadline for submitting an online Self Assessment tax return for 2025/26 is 31 January 2027. The same date is generally the deadline for paying tax owed for that return.
9. What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax is a new way for qualifying sole traders and landlords to keep digital records and report their income to HMRC.
It is being introduced in stages, beginning with qualifying income above £50,000 from 6 April 2026, followed by lower thresholds in subsequent years.
