Do I need to do a Self Assessment tax return for 2024/25?

You might be on PAYE and assume this is not for you. You might have earned a bit of extra money on the side and wonder if it even counts. Or maybe HMRC has sent you a letter that feels vague, official, and mildly terrifying.

This guide explains, in plain English, who does and does not need to file a Self Assessment tax return for 2024/25, what the common traps are, and what to do next. No jargon, no judgement, and no unnecessary scare tactics.

Who must file a 2024-25 Self Assessment tax return?

If you want the fast version, here it is. If any of the points in the first list apply to you, you will probably need to file a tax return. If you only fall into the second list, you probably will not.

You usually need to file a Self Assessment if you:

• Are self-employed and earned more than £1,000 in total from your trade or side gig
• Earned money from a side gig or freelance work where tax was not deducted
• Received rental income, especially if it is more than £2,500 after expenses or £10,000 before expenses in the year
• Took dividends or investment income outside the available allowances
• Had higher income and received Child Benefit, so the High Income Child Benefit Charge might apply
• Sold assets such as shares, crypto, or property and may have Capital Gains Tax to report
• Are a company director with income not fully taxed via PAYE
• Have been told by HMRC that you must file a tax return

You usually do not need to file if you:

• Only earn through straightforward PAYE employment or pensions
• Have no significant untaxed income
• Earned savings interest within your Personal Savings Allowance
• Received small dividends within the dividend allowance
• Have not been asked by HMRC to submit a return and none of the above situations apply

Are you self-employed or working for yourself?

Are you self-employed or working for yourself?

If you are self-employed and earned more than £1,000 between 6 April 2024 and 5 April 2025, you will usually need to file a Self Assessment tax return.

This £1,000 is called the trading allowance. It is based on income, not profit.

If you earned less than £1,000, you might not need to file. However, you may still choose to file a return if you want to:

• Claim actual expenses instead of using the £1,000 allowance, or
• Register a trading loss to use against future profits.

Examples of people who often need to file include:

• Uber or delivery drivers
• Freelancers and consultants
• Tradespeople doing private jobs
• People selling products or services online

Even if it is just a side income alongside a PAYE job, it still counts.

Do you earn money from renting out property?

If you receive rental income over £1,000 in a tax year, you should at least check whether you need a tax return.

In practice, HMRC usually expects a Self Assessment tax return if:

• Your rental income is more than £2,500 after allowable expenses, or
• Your rental income is £10,000 or more before expenses in the year.

This includes:

• Buy-to-let properties
• Renting out a former home
• Airbnb or short-term lets
• Overseas rental income

It does not matter whether you made a profit after expenses. Once the figures are higher, HMRC still wants the income reported through the correct channel.Do you have a side hustle or extra income?

Many PAYE employees assume Self Assessment does not apply to them. This is where people often get caught out.

If you earn money outside PAYE, you may need to file. This includes:

• Freelance or consulting work
• Online sales or digital products
• Social media or content creation income
• Affiliate income or paid partnerships

If money comes in and tax is not automatically deducted, HMRC usually expects it to be declared.

Do you have a side hustle or extra income?

Many PAYE employees assume Self Assessment does not apply to them. This is where people often get caught out.

If you earn money outside PAYE, you may need to file. This includes:

• Freelance or consulting work
• Online sales or digital products
• Social media or content creation income
• Affiliate income or paid partnerships

If money comes in and tax is not automatically deducted, HMRC usually expects it to be declared.

Do you receive dividends or investment income?

You may need to file a Self Assessment if you received:

• Dividends above the dividend allowance
• Untaxed interest above your savings allowance
• Income from funds, bonds or trusts that has not been fully taxed at source

This is particularly common for company directors who pay themselves through a mix of salary and dividends, or anyone with a reasonable-sized investment portfolio.

Did you earn higher income and receive Child Benefit?

If you or your partner claimed Child Benefit and one of you had higher income for the year, the High Income Child Benefit Charge may apply.

The thresholds and rules around this charge have changed in recent years, but in many cases it still means a Self Assessment tax return is required, even if all your pay goes through PAYE.

Did you sell assets and make capital gains?

You may need to file if you sold:

• Shares or investments
• Cryptoassets
• Property that is not your main home
• Other valuable assets

Capital Gains Tax can be complex. HMRC has annual limits for gains and total disposals. If you are anywhere near those limits, a Self Assessment tax return is often how the gains are reported.

Has HMRC told you to file?

If HMRC has issued you with a notice to file, you must submit a return.

Even if you think you owe no tax, ignoring it can still lead to penalties. The safest option is to file the return or ask HMRC to withdraw the notice in writing if it genuinely does not apply.

Do PAYE employees need Self Assessment?

This is one of the most searched questions around Self Assessment.

Often, the answer is no. But not always.

PAYE employees may still need to file if they:

• Have side income or freelance work
• Earn higher income and receive Child Benefit
• Are company directors taking dividends as well as salary
• Have rental or investment income above the simple allowances
• Have complex tax situations HMRC cannot sort out just through a tax code

Being on PAYE does not automatically exempt you. It simply means tax is usually deducted from your main pay before it reaches you.

Common myths and misunderstandings

“All company directors must file a tax return”

Not true. Some directors are fully taxed through PAYE and have no other income or complications. Many directors do still need Self Assessment because they take dividends or have other income, but it is not automatic in every case.

“Earning over £100,000 always means Self Assessment”

Not anymore. For the 2024/25 tax year, simply earning over £100,000 (or £150,000) through PAYE no longer automatically means you must file a Self Assessment tax return. High earners still often need Self Assessment if they have other triggers such as self‑employment, rental income, large investment income, Child Benefit charges, or complex benefits, but income level on its own is no longer a reason

“PAYE employees never need a tax return”

False. Many PAYE employees need to file because of side income, benefits, property, investments or Child Benefit.

“HMRC will contact me if I owe tax”

HMRC expects you to tell them. If you should have filed and did not, penalties can still apply even if they have not written to you yet.

What happens if you ignore it?

Missing a Self Assessment when one is required can get expensive surprisingly quickly, because there are two different types of penalties:

• Penalties for filing your tax return late
• Penalties for paying your tax bill late

1. Penalties for late filing

If you miss the 31 January online filing deadline, the standard late filing penalties are:

• 1 day late: £100 fixed penalty, even if you owe no tax.
• 3 months late: £10 per day, for up to 90 days (maximum £900), on top of the £100.
• 6 months late: extra penalty of 5% of the tax due or £300, whichever is higher, on top of the above.
• 12 months late: another 5% of the tax due or £300, whichever is higher, again on top of everything already charged.

These are about the paperwork being late.

2. Penalties and interest for late payment

Separately, if you pay the actual tax bill late, you can be charged:

• 30 days late: 5% of the unpaid tax.
• 6 months late: another 5% of whatever tax is still unpaid.
• 12 months late: a further 5% of whatever tax is still unpaid.

On top of this, interest is charged daily on any unpaid tax from the due date until it is paid.

So if your return is late and your tax is unpaid, you can be hit by:

• Late filing penalties plus
• Late payment penalties plus
• Interest on the unpaid tax.

Even if no tax is due, the late filing penalties can still apply if a return was required and not submitted.

What to do next (simple steps)

If you are unsure whether you need to file, follow these steps:

1. Review all your income for the 2024/25 tax year.
2. Check whether any of that income was not taxed automatically.
3. Confirm whether HMRC expects a tax return (using their checker or speaking to a professional).
4. Register for Self Assessment if needed.
5. Gather documents such as P60s, P45s, invoices, expense records, rental statements and dividend vouchers.
6. File online by 31 January 2026 to avoid late filing penalties.

Doing this early avoids stress, mistakes, and nasty surprises.

Want this sorted without the hassle?

If you do not want to spend evenings deciphering HMRC guidance or worrying about whether you have missed something, using an online Self Assessment service can make life much easier.

A good service will:

• Check whether you actually need to file
• Prepare your 2024/25 tax return correctly
• Submit it to HMRC on your behalf
• Help you avoid penalties and rejected returns

For many people, it is quicker and far less stressful than doing it themselves.

Final thoughts: do I need to do a Self Assessment tax return?

So, do you need to do a Self Assessment tax return for 2024/25? It depends entirely on how you earn your money and what types of income you have, not how intimidating the process feels.

If you have untaxed income, side work, rental earnings, dividends, capital gains or HMRC has contacted you, it is worth checking properly. Ignoring it rarely ends well, but dealing with it early is usually straightforward.

And if you want it off your to‑do list entirely, getting started online can be the simplest option.