Taxes Management Act 1970 section 7

Notice of liability to income tax and capital gains tax

Section 7 requires individuals and trustees who are liable to income tax or capital gains tax to notify HMRC of that liability within a specified deadline, unless their income is already fully accounted for through PAYE or other mechanisms.

• Persons chargeable to income tax or capital gains tax who have not been issued a self assessment return (or whose return has been withdrawn) must notify HMRC within six months of the end of the tax year, or within 30 days of a return being withdrawn, whichever is later.
• Trustees of settlements are subject to the same notification obligations, with references to personal returns replaced by references to trust returns.
• A person who receives a simple assessment for the year is excused from the notification duty unless they owe tax on amounts not covered by that assessment.
• No notification is needed where all income is already dealt with through PAYE, has had tax deducted at source and the person is only liable at the basic rate (or equivalent Scottish, Welsh, dividend nil, savings nil or starting rates), consists entirely of dividend income within the nil rate band, or could not give rise to a liability under self assessment, provided the person also has no chargeable gains and no liability to additional tax under section 30 of ITA 2007.