HMRC has warned that millions of taxpayers are yet to file their tax
HMRC has warned that millions of taxpayers are yet to file their tax
Time is running out to file online self-assessment tax returns or pay the tax due. The deadline is fast approaching and Wednesday, January 31 will be the final chance. If you miss the deadline you risk a fine of at least £100.
You may need to file a self-assessment if you are self-employed, or earned extra income outside of your main employment. This may be through selling items on selling websites such as eBay or Vinted.
If you’re selling items online, you need to have made over £1,000 in the space of one tax year. You must have been selling for profit, otherwise known as trading. You most likely do not need to pay tax if you were just decluttering your home and getting rid of unwanted items.
At the start of the month, HMRC warned that millions of taxpayers were yet to file their tax. Last week there were a staggering 5.4 million people risking the hefty fine. The latest HMRC figures show almost 250,000 filed theirs on January 1 and HMRC have urged others to do the same. They said: “Thousands of people filed their Self Assessment on New Year’s Day and HMRC urges those still to complete their tax return, to do it now.”
Tax returns are due from individuals or businesses that haven’t had tax automatically deducted, or that have earned extra untaxed income. There are many reason you may need to submit a tax return for the 2023/2024 tax year (April 6 2023 to April 5 2024). If any of the below applied to you it is likely you are included.
Reasons you may need to submit a tax return
- You were self-employed and your income was more than £1,000. If you earned £1,000 or less, you may still need to do a self-assessment if you want to pay ‘class 2’ National Insurance contributions voluntarily
- You earned more than £150,000 in taxable income
- You claimed Child Benefit when you or your partner earned more than £50,000 a year. This is known as the high income Child Benefit charge
- You earned £10,000 or more before tax from savings interest, investments, shares or dividends
- You earned money from renting out property or from other untaxed income, such as tips or commission
- You earned income from abroad
- You need to pay Capital Gains Tax
- You received income from a trust
- You filed a self-assessment tax return for the 2022/23 tax year
If you’re struggling to pay your tax bill and you owe less than £30,000, you may be able to set up a payment plan with HMRC, known as Time to Pay. You’ll need to not have any other payment plans or debts with HMRC, have up to date tax returns, and ask for help within 60 days after the payment deadline. If you’d prefer to speak to someone on the phone, you can call HMRC’s helpline on 0300 200 3310.
