22/04/2026
Following the end of the 2024/25 tax return filing season, some taxpayers will be receiving ‘exit letters’ (also known as SA251 letters) from HMRC telling them that they no longer need to file Self-Assessment returns. For most taxpayers this will appear to be welcome news, but it is worth stopping for a moment to consider whether there might be benefits to remaining in Self-Assessment.
Where a taxpayer or their agent feels that remaining in Self-Assessment would be the best route, it's important to contact HMRC to re-register.
There are many valid reasons why someone may no longer need to file an annual tax return.
HMRC may remove individuals with investment income (savings and/or dividends) of under £10,000 despite the fact they will still have tax to pay. Outside Self-Assessment, HMRC will collect this tax in other ways such as Simple Assessment.
But where an individual has income tax to pay, there are merits to pulling together all sources of income – and any reliefs – for the year in one go via the Self-Assessment route. This provides a ‘once and done’ approach with the correct information upfront and accurate tax computations - and the ability to appoint an agent for support.
Where HMRC chooses to collect tax via Simple Assessment or through PAYE coding notices and annual reconciliations, these are issued at the time of HMRC's choosing, do not always contain accurate information (meaning the taxpayer has to ring or write with their corrections) but you still can appoint an agent to help.
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