Do I have to complete a UK tax return?

Migrants

Some migrants and international students working in the UK will have to complete a formal tax return each year. In this section we explain what a tax return is and whether you must complete one. 

What is a tax return?

In the UK some people have to complete a tax return each year. This is a form in which you declare your income and capital gains for a tax year. You can also use the form to claim tax allowances and reliefs. You send the form to HM Revenue & Customs (HMRC) either on paper or online. The information on the tax return is used to calculate your tax liability. Because you have the legal responsibility for declaring your taxable income, submitting a tax return is called Self Assessment. If you complete a tax return, it is a ‘return’ of all of your taxable income for the year, not just the sources which HMRC has information about already from the payer (such as employment income).

However, most people in the UK pay all their tax ‘at source’, for example, through Pay As You Earn (PAYE) if they are employed, and as such are not required to file a tax return. However, where your tax affairs are complicated you have to complete a formal tax return. Receiving foreign income and gains can make them complicated.

Do I have to complete a tax return?

UK-sourced income

If you have only UK-sourced income and that income has tax deducted at source, then you probably do not need to complete a tax return, regardless of your residence or domicile status. Please note that all self-employed people in the UK, even those who pay tax at source under the Construction Industry Scheme (CIS), have to complete a tax return – unless the trading income is exempt under the trading allowance.

Alternatively, you may have some bank or building society interest. Since 6 April 2016, this does not have tax deducted at source, but if it is less than your personal savings allowance, you do not need to complete a tax return. If your bank interest exceeds your personal savings allowance, you may be able to avoid filing a tax return by asking HMRC to collect the tax due under PAYE.

People who have UK-sourced income that has not been taxed at source, or not taxed at the correct rate, and on which tax is due, may be required to complete a tax return. Such income would include, for example, rental income, income from investments or perhaps employment income that has not been taxed correctly under PAYE.

For full and detailed information please see further on Gov.uk or ask for more information