Do you need to register for self-assessment?

HM Revenue and Customs (HMRC) have issued a press release debunking some common myths about whether or not someone needs to register to complete a self-assessment tax return.


The basic requirement is that anyone who needs to complete a self-assessment return for the first time to cover the 2023-24 tax year, needs to tell HMRC by 5 October 2024.


Here are the myths and the realities highlighted by HMRC:


**Myth: I don’t need to file a return because HMRC hasn’t been in touch.**


The reality is that it is each taxpayer’s responsibility to determine whether or not they need to complete a tax return.


You may need to register and complete a tax return if you:


-have started to be self-employed and earned gross income of more than £1,000.
-earned below £1,000 but want to pay voluntary Class 2 National Insurance contributions to protect your pension and benefit entitlements.
-have become a new partner in a partnership.
-have received untaxed income above £2,500.
– need to pay the High Income Child Benefit Charge because you receive Child Benefit and you or your partner earned more than £50,000.


**Myth: Tax has to be paid at the same time as the return is filed**


The deadline for paying tax for the 2023-24 tax year is 31 January 2025. Tax can be paid any time before this date, it does not need to be paid at the same time the return is filed.


**Myth: I don’t need to file a return because I don’t owe any tax**


Tax returns need to be completed to claim tax refunds and to claim tax relief on business expenses, charitable donations, and pension contributions. A return also needs to be completed to be able to pay voluntary Class 2 National Insurance Contributions if you want to protect your pension and benefit entitlements.


**Myth: HMRC won’t expect a return from me if I don’t need to file one**


Taxpayers need to tell HMRC if they no longer need to file a tax return, perhaps because they’ve stopped being self-employed or stopped renting out a property. Especially if HMRC have sent you a notice to file a tax return they will expect one and keep reminding you and may charge a penalty if they don’t receive it.


If you think you don’t need to complete a return it is best to tell HMRC as soon as your circumstances change.


**Myth: I have to file a tax return and pay tax on things I sold after clearing out the attic**


Although there has been speculation on this, the tax rules are that selling old clothes, books, CDs and other personal items through online marketplaces do not trigger a requirement to file a return or pay income tax on the sales.


If you are not sure whether you need to file a tax return for the 2023-24 tax year, please just get in touch with us. We’ll be happy to let you know what you need to do and to contact HMRC on your behalf.


See: https://www.gov.uk/government/news/need-to-register-for-self-assessment-top-5-myths-debunked