The HMRC often sends a notice to everyone who is in the Self-Assessment system in April/May every year. This notice can be received in the form of a paper Tax Return, or a notice to file online.
Whether you are an employee taxed under the PAYE system or self employed, when you receive a tax return or notice to file online, you must complete a return and submit it to the HMRC.
The only reason you would not have to file a tax return if you have received a notice is on the grounds that you have been granted the request for your tax return to be withdrawn.
Do you need to file a tax return?
Most taxpayers in the UK are taxes from the source of their income through PAYE; therefore do not need to complete a self-assessment tax return.
If you have income that has not been taxed at the source, or not taxed at the correct rate and on which tax is due, you are required to inform the HMRC about the income within six months of tax year ending.
Income that you may need to inform the HMRC of includes rental income, self-employed income, and savings income over the savings allowance, and occasional untaxed from income such as eBay sales and casual freelance earnings.
How to request the HMRC to withdraw your tax return?
If you do not think you need to submit a tax return you can call the MRC on 0300 200 3310 and ask for the tax return to be withdrawn. If the HMRC agree, you will no longer have to file a tax return.
You can request your return to be withdrawn after late filing penalties. Once the tax return is withdrawn you will not need to file the return nor pay any late-filing penalties.
The HMRC will not normally withdraw a return if you have been self-employed at any time during the tax year- even if it was for a short time and there is no tax owing.
If you believe you are due a tax refund, completing a tax return is not always the best route. Instead you can submit a claim for repayment by contacting the HMRC