Do I need to submit a tax return for this tax year now I’m retired?

Q: Does everyone need to submit a tax return for the 2026/27 tax year? I'm early retired and do not earn over my personal allowance.

A: If you have now retired, and your total income — including pensions, investments or interest from savings — is below the personal allowance of £12,570 a year, you are unlikely to need to complete a Self-Assessment tax return.

You are not alone. Many people go through their working and retired lives without having to complete a tax return. For those who are employed and pay tax through PAYE (Pay As You Earn), Income tax and National Insurance are automatically deducted from earnings.

However, if you are self-employed or have additional freelance earnings, you may need to complete an online form to ensure you're paying the correct tax. 

• Refer to government guidance: Tax-free allowances on property and trading income

But there are a number of other cases where you may also need to complete a tax return — these apply to both working and retired people.

Being a higher-rate taxpayer does not automatically mean you must complete a Self-Assessment return. You may need one if you have:

• Untaxed income
• Capital Gains Tax (CGT) to pay
• Self-employment income above the trading allowance
• Partnership income
• High Income Child Benefit Charge (HICBC) not collected through PAYE, and there is no other filing trigger
• Refer to government guidance: Self-Assessment tax returns: Who must send a tax return

Completing a tax return can also allow taxpayers to claim back higher-rate tax relief on any pension contributions they have made. But it's worth noting that extra relief doesn’t require a full tax return — there are other ways to obtain it.

You may also need to check whether to report other sources of income, such as rental income, dividends from investments held outside an ISA, or savings interest. The rules depend on several allowances and thresholds, including:

• Property allowance
• Dividend allowance
• Personal allowance
• Starting rate for savings and personal savings allowance

Because these limits can change, and because the answer depends on your overall income position, it's worth checking HMRC’s latest guidance or using HMRC’s online tool to see whether you need to complete a Self-Assessment tax return.

You’ll need to report and pay CGT if taxable gains — after allowable losses and reliefs — exceed the annual exempt amount. The annual exempt amount for individuals is £3,000 for 2026/27. If you are already registered for Self-Assessment, you may also need to report disposals where total proceeds exceed £50,000, even if gains are below the allowance. 

• Read: What is Capital Gains Tax? The basics

Tax returns aren’t just about HMRC collecting money, they are a useful way to claim back any additional tax paid. So, if you make significant charity donations, or additional pension contributions, you may need to fill in a form.

Many people get put on emergency tax codes when they first make a flexible withdrawal from their pension, which can result in a tax overpayment. If this has happened, you can complete a special HMRC form to get a refund. However, if this hasn’t been done, you can also complete a tax return, and your tax position will be adjusted for the following year.

HMRC reported that 11.48 million people filed a Self Assessment tax return by the 31 January 2026 deadline.¹ This number is rising, possibly due to the fact that frozen tax allowances are creating more higher-rate taxpayers.

If you think you may need to complete a tax return, you need to apply to HMRC to file online. This online form will need to be completed, and any outstanding tax paid by 31 January in the following tax year.

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Source:

¹ GOV.UK Press release, 11.48 million beat the Self Assessment deadline, February 2026

• Read: 4 signs you’re holding too much cash in retirement
• Read: Retired in 2015 - what’s left now?
• Read: What income might I get from a £500,000 pension?

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.