Every citizen of the UK needs to understand their tax obligations. A pertaining doubt amongst UK taxpayers is about whether they will receive a notification from His Majesty’s Revenue & Customs (HMRC) if and when they need to file tax return in the UK. This article will offer clear insight into the answer to the question, “Will HMRC Tell Me if I Need to do a Tax Return?” Also, read whether you need to inform HRMC when selling your house. 

To begin with, you need to understand that the answer to this question is not a straight ‘yes’ or a ‘no.’ That’s because it all depends upon your circumstances and understanding of your tax obligations. 

Will HMRC Tell Me if I Need to Do a Tax Return?

In either case, you will be required to submit completed tax returns to HMRC. If you are an employee and your income is taxable under PAYE, you still need to submit your tax returns in the UK. 

In general, HMRC will send a notice for tax return filing every year in April or May. Alternatively, you may receive Tax Returns from HMRC. 

How is the Notification Sent by the HMRC? 

You will be notified by HMRC usually through email. In most cases, HMRC follows a paperless communication mode to inform taxpayers about their obligations. To receive an email to file tax returns from HMRC, you need to sign up for the digital assessment email reminder service on the HMRC website. 

When HMRC Will Notify You? 

If you have been filing tax returns previously and HMRC identifies a change in circumstances or you are classified as certain individuals, HMRC will send you a notification for tax return filing as follows – 

● If you have a history of filing tax returns in the UK, HMRC will keep sending you notifications every year till they determine that you no longer need to file returns. 

● Partners or spouses who receive Child Benefit but earn more than £50,000 will be notified for filing a tax return under the High Income Child Benefit scheme. 

● If you are a registered self-employed, you will be required to submit a self-assessment tax return to HMRC every year and you will be notified about the same.

• If you are a high-earner in the UK, that is, you earn more than £100,000 annually, and you will be notified by HMRC about tax returns in the UK. 

• If you have additional sources of income and HMRC is aware of the same, for instance, rental income or investments, you will get a notice from them to file your tax returns. 

Under What Circumstances You Might Not be Informed About Tax Returns by HMRC? 

Sometimes, HMRC notifications about tax returns do not come to you directly. In such cases, you are accountable for determining whether you need to file the returns or not. 

These are some of the scenarios you need to file a return even without receiving a notification from HMRC – 

● Capital gains from the sale of assets over and above the annual exempt limit are taxable, and you need to file a return. 

● If you receive income from abroad as foreign income, you will need to report the same to HMRC via tax returns filing. 

● If you are earning additional income as a freelancer or contractor, you are expected to file a tax return. 

● If you receive a pension that takes your total earnings above the threshold of personal allowance, you are expected to file a return and inform HMRC. 

● In case of a change in your financial situation, you will have to keep HMRC informed and file a return without being notified by them. 

What Happens When You Have Received Notification But You Do Not Need to Submit a Return? 

In this case, you will have to inform HMRC to withdraw the return. 

Take the instance where you are an employee, and you pay taxes under PAYE. It can mean that you have zero additional tax liability. In such a case, you need to call HMRC and inform them to withdraw the tax return. The contact number of HMRC is 0300 200 3310. If the HMRC is convinced, they will withdraw the notification for tax returns. 

If you have skipped informing HMRC to withdraw the tax return, you can still do it after penalties for late filing have been charged. If HMRC is convinced, you will not be required to file the returns, and the penalties will be cancelled. 

The usual duration for informing HMRC about withdrawing tax returns is about 2 years from the last date of the tax year. If you need professional help in getting your tax return withdrawn, speak to experts at Cangaf Accountants.

Determining If You Need to File Tax Returns in the UK

The best way to understand whether you need to file tax returns in the United Kingdom is to take the help of online tools and guidance from the HMRC website. There is a self-assessment eligibility checker online that can throw some light. 

Self-Assessment Tax Return 

In the UK, if you are taxed at source, you are not required to take the self-assessment tax return. This means that if you receive income after the tax has been deducted from it. For example, if you receive wages from your employer, they will deduct the taxes at source under the Pay As You Earn (PAYE) system. 

If your earnings are not taxed at source, you need to inform HMRC within a period of 6 months from the last date of the tax year. Then the HMRC will notify you about tax returns filing. These incomes include self-employed income, freelance earnings, rental income, etc. 

If you have not received the notification from HMRC and feel that you need a sell-assessmnet, you should register at the HMRC website by 5th October after the end of the tax year. 

Another important factor to keep in mind is tax refunds. If you are due a refund, you must file your tax returns. 

HMRC does inform many taxpayers about filing their tax returns while some people are not informed. The onus is on you to understand your tax obligations and comply with them.

Now you know if HMRC will tell you if you need to do a tax return? read our other blogs based on tax return:

What Is A Self-Assessment Tax Return? 

What is an HMRC Self-Assessment Tax Return?