Anyone needing to complete a Self Assessment tax return for the first time for the 2023-2024 tax year must inform HMRC by 5 October 2024. HMRC has debunked common myths about filing before the 31 January 2025 deadline:
- Myth 1: “HMRC hasn’t contacted me, so I don’t need to file.”
The reason why someone needs to register: It’s the individual’s responsibility to determine if they need to file. This may apply if you’re newly self-employed with earnings over £1,000, a new business partner, or receiving untaxed income over £2,500. Receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000 - Myth 2: “I have to pay the tax when filing my return.”
The reason why someone needs to register: Taxes for the 2023-2024 tax year aren’t due until 31 January 2025. You can set up a Budget Payment Plan to spread costs via direct debit. - Myth 3: “I don’t owe any tax, so I don’t need to file.”
The reason why someone needs to register: Even without owing tax, a Self-assessment may still be required for tax refunds, reliefs, or voluntary Class 2 National Insurance contributions. - Myth 4: “HMRC will remove me from Self Assessment if I no longer need to file.”
The reason why someone needs to register: Customers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return. If customers think they no longer need to complete a tax return for the 2023 to 2024 tax year. - Myth 5: “HMRC is cracking down on online sellers, so I must file a return.”
Reality: Selling personal items online, like old clothes, books, CDs and other personal items does not typically require filing a Self-assessment or paying Income Tax on sales.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“We want to make sure you are clear about your tax responsibilities. These myth busters and our range of resources on GOV.UK can help if you are unsure if Self Assessment applies to you or think you no longer need to file a tax return.”
Customers need to keep records to fill in their tax return correctly and they may be asked for documents if HMRC checks their return. Penalties may be issued if records are not accurate, complete, and readable. Self-employed workers must also keep records of their business income, and outgoings and make sure they are registered with HMRC.
Additional Notes:
- Tax return deadlines: 31 October 2024 for paper returns, 31 January 2025 for online returns.
- 97% of customers now file online.
- Keep accurate records to avoid penalties and ensure correct filings.
- Be wary of scams; never share HMRC login details.