Tailor your return 03 - Self Employed

Watch a short YouTube clip on your Self-employed tax return.

You must select 'Yes' if you received a coronavirus support scheme grant from the Self-Employment Income Support Scheme (SEISS), even if your turnover plus your SEISS grant was £1,000 or less.

If in the year ending 5 April 2021 you either:

• carried on a trade or vocation as a self-employed person, but not in a partnership
• were a subcontractor working in the building industry

and your turnover, including any taxable coronavirus support payments, from all self-employments was more than £1,000, you should answer 'Yes' to this question.

If your turnover from all self-employments including any miscellaneous income was up to £1,000 you should answer 'No' (unless it included a SEISS grant). Turnover up to £1,000 (unless it includes a SEISS grant) is exempt from tax and you do not need to report this on a tax return.

Also select Yes if you were self-employed and your turnover was £1,000 or less, if:

• your allowable expenses are higher than your turnover and you want to claim relief for the loss or carry forward a loss to be used against future profits
• you want to voluntarily pay Class 2 National Insurance contributions to build entitlement to contributory benefits like State Pension
• you're a subcontractor and want to claim back tax deducted under the Construction Industry Scheme (CIS)
• you expect your turnover to exceed £1,000 in the next tax year
• you want to preserve your record of self-employment, for example to support an application for Maternity Allowance
• you would like to claim Tax Free Childcare based on your self-employment income

Note, if you choose not to pay voluntary contributions this may affect the amount of state pension you receive and the ability to claim some benefits.

If you are a foster carer, you are classed as Self Employed and should select 'Yes' to this question.

Trading income allowance

If your turnover from all self-employments plus miscellaneous income was up to £1,000, then they are exempt from tax and do not need to be reported on a tax return (unless it included a SEISS grant). The trading income allowance of up to £1,000 can be split across more than one business and against miscellaneous income.

For more information on the trading income allowance go to Tax-free allowances on property and trading income.

Check if you still need to fill in a tax return

If you do not think you need to fill in a tax return for this year, go to Check if you need to fill in a Self Assessment tax return.

If you do not need to fill in a return, you must tell us by 31 January 2022 to avoid paying penalties.