How to File Your Taxes

Do you actually need to “file taxes” in the UK? 

For many employees, no separate annual tax return is needed. 

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Your employer normally deducts Income Tax and National Insurance through PAYE.

 

However, some people need to use Self Assessment to report income to HMRC. 

 

This may include some people who are: 

• self-employed; 

• receiving income that has not already been fully taxed; 

• receiving rental income; 

• required by HMRC to submit a return. 

 

Self Assessment is HMRC's system for collecting Income Tax from people whose tax is not dealt with entirely through PAYE. (GOV.UK) 

 

Step 1 — Check whether you need to file 

Do not register automatically just because you have earned some money. First use GOV.UK guidance to check whether Self Assessment applies to you. 

 

Step 2 — Register if needed 

If you are filing for the first time, you generally need to register with HMRC. You will receive a Unique Taxpayer Reference (UTR). (GOV.UK) 

 

Step 3 — Gather your information 

Depending on your situation, this might include: 

• employment income; 

• self-employment income; 

• allowable expenses; 

• other taxable income. 

 

Step 4 — Submit your return 

Most people can file online through HMRC. You can save your return and return to it later. (GOV.UK) 

 

Step 5 — Pay what you owe 

Submitting your return and paying your tax are separate responsibilities. 

 

Key takeaway 

Most employees do not “file taxes” every year. Self Assessment mainly matters when HMRC needs you to report income yourself.