If you’re a small business owner or taxpayer, it’s important to know that you are responsible for registering for self-assessment tax returns—HMRC won’t remind you! The deadline for registering for the 2023/24 tax year is 5th October 2024, and failure to do so could lead to penalties.
The final deadline for submitting your return is 31st January 2025 for online submissions or 31st October 2024 for paper returns.
Here are some common myths that can lead to confusion, and the facts you need to know:
Myth 1: “HMRC hasn’t contacted me, so I don’t need to file a tax return.”
Reality: HMRC won’t notify you—it’s your responsibility.
You may need to file a return if:
- You are newly self-employed and earned over £1,000.
- You need to pay Class 2 national insurance contributions to protect your state pension.
- You are a partner in a business partnership or received untaxed income (such as dividends or rental income) over £2,500.
- You or your partner earn more than £50,000 and receive child benefit (due to the high income child benefit charge).
Myth 2: “I have to pay the tax as soon as I file the return.”
Reality: even if you file early, tax payments aren’t due until 31st January 2025. You can even set up a payment plan to spread the cost over time.
Myth 3: “I don’t owe tax, so I don’t need to file a return.”
Reality: even if no tax is owed, you might need to file a return to claim tax relief on business expenses or voluntary national insurance contributions.
Myth 4: “HMRC will automatically stop my self-assessment if I no longer need it.”
Reality: you need to inform HMRC if your circumstances change, such as stopping self-employment or renting out property. Otherwise, you could be penalized for not filing.
Myth 5: “HMRC is cracking down on people selling online, so I need to file a return.”
Reality: you do not need to file a tax return for selling personal items like old clothes or books online. This only applies if you’re running a business.
Deadlines and how to file
The deadline for paper tax returns is 31st October 2024, and online returns must be submitted by 31st January 2025. If you prefer to file by paper, you need to request a form by calling HMRC.
