It is a common misconception that a tax return should not be filed if no tax is due. Unfortunately, this is not the case. Payment of tax is nothing to do with the filing of tax returns. Filling Tax returns is a legal obligation regardless of tax due. There are circumstances where taxpayers are exempted from filing tax returns, detailed in HMRC guidance. For example, if foreign income exceeds £300.00, the taxpayer must file a tax return, regardless of total taxable income above or below the Personal Allowance. Remember that there may not be any penalty for non-payment of tax, but you can get a penalty for non-filling the tax returns.