What is a tax return
HM Revenue and Customs may issue you a tax return. You are legally obliged to complete this. It is a form to:
report your taxable income and capital gains if appropriate
claim allowances and tax reliefs.
HMRC uses the information on your tax return to work out what tax you owe them or if you are entitled to a tax refund.
Should you complete a tax return
If you are paid wages or salary and receive a payslip, or an occupational pension, you will not receive a tax return request.
However, HMRC will issue one if you:
are a company director (but not if you are a director of a not-for-profit company)
have rental or other income from property (unless it is less than a certain amount and can be dealt with through a PAYE tax code)
have other income which is not taxed before you get it and the tax cannot be collected through the PAYE system
have to pay extra tax because your household receives Child Benefit and someone in your household has a large taxable income.
If you are a pensioner
Most pensioners do not fill in tax returns. However, tax-free allowances for people born before 6 April 1948 are affected by annual income over a certain amount, so a tax return may sometimes be necessary.
If you have not received a tax return
It's your responsibility to inform HMRC that you have received income on which tax is payable. If you have not received a tax return but you think you should fill one in, phone HMRC and ask for a return to be sent to you. Do not wait for HMRC to contact you. If you send in the tax return late, you may have to pay:
interest on any tax paid late, and