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Do I Need to File a Tax Return If I Am Employed?


Do Employees Need to Complete a Tax Return?

Most of the time you do not need to complete a self assessment tax return if you are employed and have no other sources of income.

However, there are exceptions to this such as:

  • When wanting to claim back tax from pension contributions when earning more than £50,270 (40% tax payer)
  • When your employment income, including bonuses and benefits, is more than £100,000 a year.
  • To declare your high income child benefit charge (see below)

That’s why we’ve put together this guide to help you understand everything you need to know about tax returns and tax rates for employees earning more than £100,000 a year.

Understanding the High Income Child Benefit Charge (HICBC)

The High Income Child Benefit Charge (HICBC) is a tax liability for high-earning employees in the UK.

It is important to understand how HICBC works and how it may impact your child benefit.

Your adjusted net income is used to calculate HICBC, and it is the total of your taxable income, minus certain deductions such as pension contributions.

Once your adjusted net income exceeds £50,271, your child benefit may be reduced or removed entirely, which is charged via a self assessment tax return.

Tax Rates for High Earners – Know Your Numbers!

Knowing the tax rates for high earners is essential to understand how much tax you may owe at the end of the tax year.

For the 2022-2023 tax year, the tax rates in the UK are as follows:

  • Earnings up to £50,270 are taxed at a basic rate of 20%,
  • Earnings between £50,271 to £150,000 are taxed at a higher rate of 40%,
  • Earnings over £150,000 are taxed at an additional rate of 45%.

These tax rates are applied to your total taxable income, which includes your salary, bonuses, and any other taxable benefits.

Time to File Your Tax Return – Let’s Get Started!

Filing your tax return is a crucial step in being tax compliant.

The deadline for filing your tax return is 31st January following the end of the tax year.

You can file your tax return either online or by post, and you will need to report all of your taxable income and benefits to HM Revenue & Customs (HMRC).

Tax Reliefs for High Earners – Maximise Your Savings

As a high earner, you may be eligible for tax relief on certain expenses, such as professional subscriptions, job-related expenses, and charitable donations.

To claim these tax reliefs, you will need to keep evidence of your expenses, such as receipts or invoices.

This can help to minimize your tax liability and maximize your savings.

Get Professional Help – Smooth Sailing Through Tax Returns!

If you are a high earner, it is advisable to seek the help of a tax professional, such as an accountant or tax advisor.

This will ensure that you are fully compliant with all tax laws and regulations and help you minimize your tax liability.

With their expertise, you can have peace of mind knowing that your tax returns are in good hands.


In conclusion, tax returns for high earners can be a complex process, but with the right knowledge and professional help, you can ensure compliance with all tax laws and regulations and minimize your tax liability.

We hope this guide has been helpful, and if you have any further questions, please do not hesitate to contact us.

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