Do you need to submit a self assessment tax return for the tax year 2023 – 24?
Have you registered for self assessment with HMRC?
When we think of self assessment timings, we think of the 31 January submission deadline. However, if you need to submit a tax return for the first time, another important deadline is involved: 5 October. This is the date by which HMRC needs to know you must complete your first self assessment tax return.
‘People often assume HMRC will tell them if and when they need to submit a return,’ says Emily Bridges, Chartered Accountant and tax expert at re:accounts in Stevenage. ‘However it’s down to each individual to tell HMRC they need to start submitting self assessment tax returns. The same submission deadline (31 January) and payment dates apply (31 January, 31 July). You must tell HMRC by 5 October if you need to complete a tax return and have not sent one before. This can be done by registering for Self Assessment online and no further action or payments are needed at that point.’
Who needs to submit a tax return?
If any of these circumstances apply, you need to complete a tax return:
- you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
- you were a partner in a business partnership
- you had a total taxable income of more than £150,000
- you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
- you had to pay the High Income Child Benefit Charge
In addition, you may need to submit a tax return if you have untaxed income such as:
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income
(Source: gov.uk)
The government provides an online tool to check if you need to send a tax return. Alternatively, contact the team at re:accounts for a friendly, jargon-free chat.
What happens if I no longer need to submit a self assessment tax return?
If you stop being self-employed or your circumstances change, you may no longer need to complete a self-assessment tax return. If so, you must tell HMRC. Otherwise, HMRC will continue to expect a tax return to be submitted. You may incur penalties if you don’t file a return even though this is no longer a requirement for you.
What about my eBay, Airbnb or similar income?
As a seller, you can earn up to £1,000 a year of gross income before declaring it to HMRC. Reporting rules were simplified in January 2024. Read more about side hustle reporting requirements.
What’s next?
HMRC has a free online tool to check whether a self assessment tax return is due. There are video tutorials on YouTube and help and support on the HMRC section of the gov.uk website.
The re:accounts team is here to help! Tax is our superpower and we love helping clients to save money and stress regarding their tax. Contact us for an initial discussion, preferably with coffee!
