HM Revenue and Customs (HMRC) have released a press statement addressing some common misconceptions about who needs to register for and complete a self-assessment tax return.

The key requirement is that anyone needing to submit a self-assessment return for the first time for the 2023-24 tax year must inform HMRC by 5 October 2024.

Here are the myths and the realities as clarified by HMRC:

Myth: I don’t need to submit a return because HMRC hasn’t contacted me. Reality: It is the responsibility of each taxpayer to determine whether they need to complete a tax return, not HMRC’s.

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

  • Have begun self-employment and earned gross income exceeding £1,000.
  • Earned less than £1,000 but wish to pay voluntary Class 2 National Insurance contributions to safeguard your pension and benefit entitlements.
  • Have become a new partner in a partnership.
  • Have received untaxed income over £2,500.
  • Need to pay the High Income Child Benefit Charge because you or your partner earned over £50,000 while receiving Child Benefit.

Myth: Tax must be paid at the same time the return is filed. Reality: The deadline for paying tax for the 2023-24 tax year is 31 January 2025. You can pay the tax any time before this deadline; it does not need to be paid when the return is filed.

Myth: I don’t need to file a return because I don’t owe any tax. Reality: Tax returns are necessary to claim tax refunds, and to obtain tax relief on business expenses, charitable donations, and pension contributions. Additionally, if you want to protect your pension and benefits by paying voluntary Class 2 National Insurance contributions, a return is required.

Myth: HMRC won’t require a return from me if I don’t need to file one. Reality: Taxpayers must inform HMRC if they no longer need to file a tax return, for instance, if they have stopped being self-employed or ceased renting out property. If HMRC has issued a notice to file, they will expect a return and may impose penalties if they do not receive it. It’s best to notify HMRC as soon as your circumstances change.

Myth: I have to file a tax return and pay tax on items I sold after clearing out the attic. Reality: Contrary to some speculation, selling personal items like old clothes, books, and CDs through online marketplaces does not usually require you to file a tax return or pay income tax on those sales.

If you are unsure whether you need to submit a tax return for the 2023-24 tax year, please feel free to contact us. We’d be happy to advise you on what steps you need to take and to liaise with HMRC on your behalf.

See: Need to register for self-assessment? Top 5 myths debunked