Why Did HMRC Ask Me for a Self Assessment?

---

If HMRC has asked you to complete a tax self assessment, it’s usually for a simple reason: they believe you have earned income that hasn’t been taxed automatically (like wages are). The most common reason is that you have registered as a self-employed sole trader or have become a landlord.

What is a Tax Self Assessment?

A Self Assessment is simply the way the UK government (HMRC) collects tax from people who don’t pay all their tax through a PAYE (Pay As You Earn) employer.

It’s a form (usually filed online) where you must report all your income sources (e.g., self-employed profits, rental income, dividends). You then calculate what tax and National Insurance you owe. You’ll find all the official rules on the self assesment gov.uk website.

Common Reasons HMRC Asks for a Tax Return

HMRC will ask you to send a tax return if your finances get more complicated. The most common reasons are:

• You are self-employed or a sole trader (e.g., a cleaner, builder, consultant).
• You are a landlord and earn money from renting out a property.
• You earned over £1,000 from a “side hustle” (this is the “trading allowance”).
• You are a director of a limited company.
• You earn over £100,000 per year, even from a PAYE job.
• You have to pay the High Income Child Benefit Charge.
• You have significant income from savings or dividends.

What Do I Need to Do?

Don’t panic! The letter from HMRC will have instructions. If you agree you need to file a return, your first step is to register self assesment with HMRC.

You will need to go to the self assesment gov.uk portal and create an account to get your UTR (Unique Taxpayer Reference) number.

Once you are registered, you will need to gather your records (invoices, expenses, bank statements) to complete your return.

Important: What If I Don’t Owe Tax?

Yes. This is very important. If HMRC sends you a letter asking for a tax return, you must complete one, even if you made a loss or earned very little.

If you ignore the letter, you will get an automatic £100 fine, which grows over time.

If you are no longer self-employed, you must still complete the return for that tax year and also tell HMRC to stop asking for them in the future.

Don’t Stress About It — Get Help

Getting a letter from HMRC can be stressful, but it’s usually just routine. You don’t have to handle it alone.

An accountant can manage the whole process for you. I can register self assesment on your behalf, take care of all the paperwork, and make sure you only pay exactly what you owe (and not a penny more).

I’ll make sure you claim for all your expenses and that your return is filed correctly and on time, so you never have to worry about fines.

---