BRITS have just hours left to tell HMRC if they need to register to make a Self Assessment tax return.
You must tell the tax office by today, October 5 if you need to complete a tax return and have not sent one before.
The assessment is used by the government body to collect income tax.
This tax is usually deducted automatically from people’s wages, pensions and savings.
However, people and businesses with extra income must report it in a tax return.
It is worth noting that this is not the date you need to file your Self Assessment, just the date you need to register your intention to file.
If you are not sure whether you need to register you can complete a simple assessment on the gov.uk website.
It is particularly important to register this year especially if you sell clothes or other items on websites such as eBay or Vinted.
That is because since the beginning of 2024 firms like Vinted have to pass on customer data to HMRC if a user sells 30 or more items, or earns over £1,700, in a year.
While the reporting rules have changed, this is not a new tax.
Those who earn more than £1,000 outside their regular employment were already required to file a Self Assessment tax form with HMRC.
The deadline to submit the return for the 2023/24 tax year – and pay any tax you owe – is January 31, 2025 online.
But there’s an earlier deadline of October 31 this year if you file via post.
It is worth bearing in mind that HMRC will fine you £100 for failing to file your return by the deadline.
Then, a £10 daily fine applies every day you don’t submit your tax return.
When do I need to file a tax return?
It is not just online sellers who are required to fill out a tex return.
The rule applies to the following:
- Your income from self-employment was more than £1,000
- Earned more than £2,500 from renting out property
- You or your partner received high-income child benefits and either of you had an annual income of more than £60,000
- Received more than £2,500 in other untaxed income, for example from tips or commission
- Are limited company directors
- Are shareholders
- Are employees claiming expenses over £2,500
- Have an annual income over £100,000
You can register online via the GOV.UK website.
To register online you must log on to your business tax account on the HMRC website and select ‘Add a tax to your account to get online access to a tax, duty or scheme’.
If you do not already have sign in details, you’ll be able to create them when you sign in for the first time.
If you do not want to register online you must send a form to the following address: Self Assessment, HM Revenue and Customs,
BX9 1AN, United Kingdom.
After you submit your form you will then get a unique taxpayer reference code (UTR) and activation code from the HMRC.
It’s a 10-digit number and it might just be called a tax reference.
This tends to arrive in the post 15 days after you register for a tax return.
Upon receiving the UTR you can then file a Self Assessment tax return online via the GOV.UK website or by post.
If you file by post the deadline is October 31 2024.
However, if you file online you have up to January 31, 2025.
Check out our step-by-step guide on filling out a tax return here.
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income – but you need to know the rules.
When you’re employed the company you work for takes the tax from your earnings and pays HMRC so you don’t have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: “Caution should be taken if you’re earning an additional income, as this is likely to be taxable.
“The side hustle could be treated as taxable trading income, which can include providing services or selling products.”
You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you’ll usually need to pay tax.
Stephen added: “You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
“The applicable tax bands and the amount of tax you need to pay will depend on your income.”
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe – plus extra fees on top.