HMRC has issued a deadline for individuals who need to complete a Self Assessment tax return for the 2023 to 2024 tax year. Anyone in this category should inform HM Revenue and Customs by October 5, 2024. The tax authority dispelled common misconceptions surrounding Self Assessment ahead of the January 31, 2025, deadline.
One myth debunked by HMRC is the belief that not being contacted by HMRC means one doesn’t need to file a tax return. The responsibility lies with the individual to determine if they need to complete a tax return. Various reasons necessitate filing, such as being newly self-employed, earning over £1,000, or receiving untaxed income over £2,500. Resources on GOV.UK can help individuals determine if they need to file a Self Assessment.
Another myth addressed was the requirement to pay tax simultaneously with filing the return. HMRC clarified that payments for the 2023 to 2024 tax year are due by January 31, 2025. Additionally, individuals can set up a Budget Payment Plan to spread the cost of their next tax bill through regular direct debit payments.
Even if someone doesn’t owe tax, they may still need to file a return for various reasons, such as claiming tax refunds or relief. Failure to update HMRC about changes in circumstances, such as ceasing self-employment, might lead to penalties. HMRC emphasised the importance of keeping accurate records, especially for self-employed individuals, to prevent penalties due to incomplete documentation.
HMRC reminded individuals to be vigilant against scams and not share login information with anyone. The tax authority encouraged early filing of returns to provide peace of mind, identify opportunities for spreading costs, claim refunds promptly, and avoid errors. HMRC reiterated the necessity of accurate record-keeping and the potential consequences of inaccurate records.
In conclusion, HMRC provided guidance on Self Assessment matters, encouraging individuals to educate themselves on their tax responsibilities and use available resources to ensure compliance.