As an employee you tend to meet all of your responsibilities to the UK tax regime using the PAYE system.

 

Nevertheless, there can be instances when submitting a tax return can be the best move for reducing the amount of tax you have to pay or because you are obliged to under HMRC rules. This might apply where you are employed and:

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• You are self employed or a partner in a partnership

• You are a company director

• You have large amounts of savings or investment income

• You have untaxed savings or investment income

• You own land or property that is being let

• Your household receives Child Benefit and you have income in excess of £50,000

• You have income from overseas

• You have sold or given an asset away (such as a holiday home or some shares)

• You’ve lived or worked abroad or aren’t domiciled in the UK

 

Even if some of these activities do not generate a profit (such as rental properties or self employment), completing a tax return may be compulsory and even when a tax return is not required, it could lower your tax bill and therefore voluntarily completing one can be beneficial.