Key takeaways

  • You must file a Self Assessment return if your gross self-employment income was over £1,000 in the tax year, before expenses.
  • Other untaxed income, such as tips or rent, triggers a return at £2,500 or more; between £1,000 and £2,500 you contact HMRC instead.
  • HMRC's manual says savings and investment income, or dividends, of £10,000 or more before tax needs a Self Assessment record.
  • Employees taxed only through PAYE no longer need a return just because income is over £150,000, from 2024-25 onwards.
  • The High Income Child Benefit Charge starts at £60,000 of adjusted net income, and can now be paid through PAYE instead of Self Assessment.
  • From 6 April 2027 the trading income reporting threshold rises from £1,000 to £3,000.
  • If HMRC sends you a notice to file, you must file by the deadline whatever your income, unless HMRC withdraws the notice.

You need a Self Assessment tax return if your income in the tax year crossed one of HMRC’s thresholds: more than £1,000 of gross self-employment income, £2,500 or more of other untaxed income, or £10,000 or more of savings or dividend income. Some triggers have no threshold at all, such as being a partner in a partnership or owing Capital Gains Tax. This page sets out each threshold for the 2025-26 tax year, the return now due by 31 January 2027.

Which thresholds trigger a tax return?

The main income thresholds come from GOV.UK and HMRC’s own Self Assessment Manual at SAM100060, updated on 2 November 2026.

Income typeThreshold for a returnBelow it
Self-employmentOver £1,000 grossCovered by trading allowance
Other untaxed income£2,500 or more£1,000 to £2,500: contact HMRC
Property incomeOver £2,500 net, or £10,000 gross£1,000 to £2,500: contact HMRC
Savings interest£10,000 or more before taxTax code or Simple Assessment
Dividends£10,000 or more before taxTax code or helpline
Capital gainsTax due after £3,000 exemptionNo return needed for gains

“Gross” means before you take off expenses. A self-employed person with £1,200 of sales and £900 of costs still crosses the £1,000 line.

Triggers with no income threshold

Some circumstances need a return whatever the amount. GOV.UK’s who must send a tax return page and SAM100060 list:

  • being a partner in a business partnership
  • Capital Gains Tax to pay that you have not already paid through the real time Capital Gains Tax service
  • the High Income Child Benefit Charge, where you do not pay it through PAYE
  • income from a trust, settlement or estate where more tax is due
  • foreign income on which UK tax is due, even small amounts
  • being a minister of religion, a share fisherman or a Lloyd’s name
  • repaying a student loan while working under the off-payroll rules
  • claiming Enterprise Investment Scheme or SEIS relief of £10,000 or more

The £1,000 and £2,500 rules explained

The £1,000 trading allowance covers small amounts of self-employment income. GOV.UK’s allowances guidance says gross trading income of £1,000 or less usually needs no report, and anything over £1,000 means registering for Self Assessment.

For other untaxed income, such as tips or commission, the line is £2,500. GOV.UK’s how you pay Income Tax page says to contact the Income Tax helpline if rental income was between £1,000 and £2,500, so HMRC can collect the tax through your tax code.

The allowances cannot be used on income from your employer, your spouse’s employer, a partnership, or a company you or a connected person controls.

Savings, dividends and high earners

Savings interest and dividends only need a return at £10,000 or more. Below that, HMRC’s Agent Update 147 (updated 18 September 2026) says it usually collects tax through a tax code change, or a Simple Assessment letter if more than £3,000 is owed. See our guide to the P800 letter.

High earners taxed only through PAYE no longer need a return because of income alone. HMRC’s Agent Update 138 says a client with income over £150,000 taxed entirely through PAYE does not need to file for 2024-25. Income over £100,000 still reduces your personal allowance by £1 for every £2.

The High Income Child Benefit Charge applies once adjusted net income passes £60,000, and claws back all Child Benefit at £80,000. You can now pay it through PAYE unless you file for another reason. See the HICBC guide.

What changes from April 2027

The trading income reporting threshold rises from £1,000 to £3,000 for 2027-28 onwards. HMRC’s tax information and impact note of 28 October 2026 confirms the trading allowance itself also rises to £3,000. The £2,500 and £10,000 thresholds are not changed by that measure. See trading allowance triples to £3,000.

Which applies to you?

  • If you started freelancing and earned over £1,000 gross, register by 5 October after the tax year ends and file.
  • If you let a room or property and made £1,000 to £2,500, phone HMRC to have it collected through your tax code.
  • If your only extra income is bank interest under £10,000, you usually do nothing; HMRC uses data from your bank.
  • If you sold shares or a second home at a gain above £3,000, report the gain.
  • If HMRC has sent you a notice to file, you must file, or ask HMRC to withdraw it.

Our who needs to file guide has more examples, and the Self Assessment calculator estimates the bill.

What to do now

  1. List every income source for 6 April 2025 to 5 April 2026.
  2. Compare each against the table above.
  3. If you crossed a threshold and have not registered, do it now. The 5 October 2026 deadline has passed, and HMRC says a failure to notify penalty may apply.
  4. If you no longer cross any threshold, tell HMRC before 31 January 2027.

Frequently asked questions

What is the income threshold for Self Assessment?

There is no single figure. The main thresholds are over £1,000 of gross self-employment income, £2,500 or more of other untaxed income, and £10,000 or more of savings or dividends.

Do I need to file a tax return if I earn over £100,000?

Not if all your income is taxed through PAYE and you have no other reason to file. HMRC removed the PAYE-only income threshold from 2024-25.

Do I need a tax return for £500 of side income?

No, if it is trading income. Gross trading income of £1,000 or less is covered by the trading allowance and does not need reporting.

Do I need to file if my savings interest is over my Personal Savings Allowance?

Only if it is £10,000 or more. Below that, HMRC normally collects the tax by changing your tax code or sending a Simple Assessment.

When does the £3,000 reporting threshold start?

From 6 April 2027, for the 2027-28 tax year. For 2025-26 and 2026-27 the trading threshold stays at £1,000.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.