If you know you owe Income Tax on increased amounts of savings income and/or have sold assets realising a chargeable gain on which Capital Gains Tax is payable – it is very likely that you will need to complete a 2024 Tax Return.
This will involve registering for Self-Assessment by 5 October 2024 via https://www.gov.uk/register-for-self-assessment
It is your responsibility to register and complete a 2024 Tax Return if you:
- have started to work for yourself and earned gross income exceeding £1,000
- have become a new partner in a partnership
- have received other untaxed income (e.g. interest, dividends, property 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
- earned below £1,000 and want to pay voluntary Class 2 National Insurance to protect your pension and benefit entitlements
Tax Returns need to be completed to claim tax relief on business expenses for those who are self-employed, higher rate tax relief on charitable donations and pension contributions, for example. Although there has been much speculation on this topic, selling your clothes, books, CDs and other personal items on an ad-hoc basis through online marketplaces does not trigger a requirement to file a Tax Return or pay Income Tax on monies received – unless you are doing this for others as a trade.
The deadline for paying tax for 2023/24 tax year is 31 January 2025 irrespective of the date you file your Tax Return (but in reality, what you owe can be paid any time before this date).
It is each taxpayer’s responsibility to determine whether or not they need to complete a Tax Return. Likewise, if you no longer need to file a Tax Return because you’ve stopped being self-employed or renting out a property – tell HMRC as soon as possible (especially if HMRC have sent you a notice to file a Tax Return they will expect to receive it and will charge a penalty if they don’t receive it).
If you would like help fathoming out whether you need to file a 2024 Tax Return, please call us on 01223 810100 for friendly help and guidance.
