How to file taxes on under £15,000 income in the UK

Who needs to file a tax return?

If your income is under £15,000, you might not need to file a tax return. However, there are situations where you are required to do so:

• Self-employment: If you’re self-employed, regardless of your income, you must file a Self Assessment tax return.

• Untaxed income: If you have untaxed income, such as from rental properties, investments, or side jobs.

• Claiming tax relief: If you’re claiming tax reliefs or allowances.

• High earner’s child benefit charge: If you or your partner’s income exceeds £50,000 and you claim Child Benefit.

If none of these apply to you and your income is solely from wages, pensions, or savings, you might not need to file a return. Always check with HMRC to confirm.

Steps to file your tax return

1. Register with HMRC

If you haven’t done so already, you need to register for self assessment with HMRC. You can do this online, by phone, or by post. Once registered, HMRC will send you a Unique Taxpayer Reference (UTR) number, which you'll need for all your tax dealings.

2. Keep records of your income

Accurate records are essential. Ensure you have all relevant documents, such as:

• Payslips

• Bank statements showing interest earned

• Invoices if you're self-employed

• Rental income details

• Any other sources of income

These records will help you correctly report your income.

3. Complete the tax return

Log into your HMRC online account and fill out the Self Assessment form. Here’s what you'll need to include:

• Personal details: Ensure all your personal details are accurate.

• Income details: Include income from all sources, even if it’s below the personal allowance.

• Tax reliefs and allowances: If eligible, you can claim reliefs such as Marriage Allowance or Blind Person’s Allowance.

• Additional income: If you earned extra income, such as dividends, rent, or overseas income, declare it here.

4. Calculate your tax liability

Once you've entered all the necessary information, HMRC will calculate how much tax you owe. If your income is below £12,570, you won’t pay any tax due to the personal allowance. However, you might owe tax on other types of income, such as savings or dividends.

5. Pay your tax bill

After submitting your return, HMRC will tell you how much tax you need to pay. You can pay online, via direct debit, or by cheque. Be sure to pay by the deadline to avoid penalties.

Deadlines to remember

• Registering for self assessment: By 5th October following the end of the tax year.

• Online submission: By 31st January following the end of the tax year.

• Payment of tax: By 31st January following the end of the tax year.

Common mistakes to avoid

• Missing the deadline: Late submissions can result in penalties. Keep track of deadlines to avoid unnecessary fines.

• Incomplete information: Double-check your details before submitting. Errors can lead to delays and further scrutiny from HMRC.

• Forgetting tax reliefs: Make sure you claim all eligible reliefs to reduce your tax liability.

How we can help

We make filing your self assessment easy and straightforward. Just fill out our simple questionnaire, and you'll receive a personalised, step-by-step guide on how to complete your tax return, tailored to your unique situation, for just £9.99. We’re here to simplify the process and help you avoid common pitfalls, ensuring you meet all your obligations without stress.

Filing taxes on an income under £15,000 in the UK doesn't have to be complicated. By following the steps outlined above, you can ensure that you meet your obligations and avoid any penalties. Remember, if you're ever unsure, professional help is just a click away.