Who Needs to Submit a Tax Return: Essential Information for Self-Employed Business Owners and Shareholders
As a self-employed business owner or shareholder, it’s crucial to understand your tax obligations. You must submit a tax return if any of the following applied during the previous tax year (6th April 2023 to 5th April 2024):
- You were self-employed as a sole trader and earned more than £1,000 (before deducting any allowable expenses or tax reliefs).
- You were a partner in a business partnership.
- You received dividends from shares—whether from your own limited company or other investments—which contribute to your total taxable income.
- Your total taxable income exceeded £150,000.
- You had to pay Capital Gains Tax on the sale or disposal of an asset that increased in value.
- You were subject to the High Income Child Benefit Charge.
Key Point: Dividends
If you have taken dividends, particularly as a company shareholder, you are required to submit a tax return, regardless of whether the dividend income is from your own business or other investments.
Other Situations Where You May Need to Submit a Tax Return
In addition to dividends, you may need to file a return if you have any untaxed income, such as:
- Rental income from property
- Tips or commissions
- Interest from savings and investments
- Foreign income
Not Sure if You Need to Submit a Tax Return?
If you're uncertain, you can contact us at info@standardaccounting.co.uk or 0333 222 5676 to clarify your filing obligations.
How do I know if I need to register?
To check if you're already registered for Self Assessment, look for a Unique Taxpayer Reference (UTR) number, which would have been provided by HMRC when you first registered.
You can find your UTR on previous tax returns, HMRC letters, or in your personal tax account online. If you have access to your personal tax account, you can log in and check your Self Assessment status there.
Alternatively, you can contact HMRC directly to confirm whether you're registered. If you don’t have a UTR, it’s likely you haven’t registered yet and will need to do so. We can do this for you as part of your submission.
Voluntary Filing
You may also choose to file a tax return to:
- Claim Income Tax reliefs
- Prove your self-employed status for benefits like Tax-Free Childcare or Maternity Allowance
- Pay voluntary National Insurance contributions to protect your entitlement to state benefits and pensions
Make sure you stay on top of your filing to avoid penalties and ensure you're claiming all available tax reliefs.
You can read more about the criteria for completing a Self Assessment Tax Return on the GOV.UK website
Looking for more information?
Myself or another one of our trained accountants are here to answer any questions you may have. Feel free to give me a ring or book a call for a time and day that suits you best.
Jodie Hall, Accountancy Advisor
info@standardaccounting.co.uk | 0333 222 5676