Registering for Self Assessment can feel confusing, especially if you’re new to running your own business or earning income outside of regular employment. At Every Penny Accounts, we often speak to clients who aren’t sure whether HMRC expects them to complete a tax return or whether their income is already covered through PAYE.
In simple terms, Self Assessment is HMRC’s way of collecting Income Tax from individuals whose tax isn’t automatically deducted. This includes many sole traders, freelancers, landlords, and people with additional income. If this applies to you, you’ll usually need to register with HMRC and submit a tax return each year, declaring your income and expenses.
Timing also matters. You normally need to register for Self Assessment by 5 October following the end of the tax year in which you first had untaxed income. Missing this deadline can lead to penalties, so it’s always worth checking early if you’re unsure.
What Does HMRC’s Self Assessment Criteria Look Like?
HMRC sets out specific criteria to determine who must complete a Self Assessment tax return. While some cases are obvious, others are less clear, particularly if you have multiple income sources or your circumstances change during the tax year.
You’ll usually need to register for Self Assessment if any of the following apply:
- You are self-employed or a sole trader
- You earn income from freelancing or contract work
- You are a company director (unless all income is taxed through PAYE)
- You receive rental income from property
- You earn income from investments, dividends, or savings above certain thresholds
- You have foreign income
- You receive Child Benefit and you or your partner earn over £50,000
- Your total income exceeds £100,000
- You need to claim certain tax reliefs not handled through PAYE
If you meet any of these criteria, HMRC is likely to expect a tax return. Not every situation is straightforward, though. A quick review of your income sources with the expert accountants at Every Penny Accounts can clarify whether Self Assessment is required and help you avoid issues later.
How Do I Check If I Need to Send a Tax Return?
A good starting point is to review all of your income for the tax year and consider whether it has already been taxed at source. If you are employed and your only income comes through PAYE, you may not need to complete a tax return. However, additional income such as freelance work, rental income, or investments can still trigger a Self Assessment requirement, even if the amounts feel relatively small.
HMRC offers an online checker to help you determine whether you need to submit a tax return, but it isn’t always definitive. It may not fully account for more complex situations or changes during the year. Checking early gives you time to register properly and helps you avoid missed deadlines, penalties, and unnecessary stress.
Do I Need to Complete a Self Assessment Tax Return for Freelancing?
In most cases, yes. If you earn money through freelancing, you’ll usually need to register for Self Assessment and submit a tax return each year. This applies whether freelancing is your main income or something you do alongside employment, as any income not taxed through PAYE must normally be declared to HMRC.
As a freelancer, you’re responsible for calculating and paying your own Income Tax and National Insurance. You can also claim allowable business expenses to reduce your tax bill. Many freelancers underestimate how much tax they’ll owe and get caught out when deadlines arrive. Accurate record keeping and professional support help ensure your return is completed correctly and that you’re not paying more tax than necessary.
How Is Making Tax Digital Changing Self Assessment?
From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will change how many sole traders and landlords report their income to HMRC.
If your combined business and property income exceeds £50,000, you’ll need to keep digital records and submit quarterly updates to HMRC using compatible software. Instead of a single annual tax return, you’ll submit quarterly reports followed by an end of year declaration.
This marks a major shift away from the traditional once-a-year filing model and means businesses and landlords will need to stay organised throughout the year, rather than dealing with everything in January.
At Every Penny Accounts, we offer full support and a complete filing service for MTD ITSA. This includes software setup, digital record-keeping guidance, quarterly submissions, and year-end compliance. Our aim is to give you peace of mind that everything is handled correctly as the new rules come into effect.
Important Self Assessment Deadlines
Understanding Self Assessment deadlines is crucial, as HMRC penalties apply automatically if you miss them, even if you don’t owe any tax.
Key deadlines include:
5 October: Deadline to register for Self Assessment (if you’re new)
31 October: Deadline for submitting a paper tax return
31 January: Deadline for submitting an online tax return
31 January: Deadline to pay any tax owed for the previous tax year
31 July: Second payment on account (if applicable)
Missing these deadlines can result in penalties and interest that quickly add up. Many people choose to work with an accountant, such as Every Penny Accounts, so deadlines are managed properly and nothing is overlooked while we assist you in filing your Self Assessment Tax Return.
What Records Do I Need to Keep?
Keeping accurate records is a legal requirement if you complete a Self Assessment tax return. Good record keeping also makes the process quicker, more accurate, and far less stressful.
You should keep records such as:
- Invoices issued and received
- Bank statements and transaction records
- Receipts for business expenses
- Mileage logs and travel expenses
- Property or investment income records
- Details of any grants or support payments received
HMRC generally requires records to be kept for at least five years after the 31 January submission deadline. Digital record-keeping software can make this easier and is essential for those affected by MTD ITSA.
Still Unsure? Speak to an Expert
If you’re unsure whether you need to register for Self Assessment, want help preparing for Making Tax Digital, or simply want reassurance that everything is being handled correctly, you don’t have to figure it out alone.
At Every Penny Accounts, we support individuals, freelancers, and business owners with clear advice, practical solutions, and a friendly, personal approach. Whether you need help registering, completing your tax return, or preparing for MTD ITSA, our team is here to help.
Get in touch today and let us take the stress out of Self Assessment, so every penny works as hard as it should for you.
