There are likely to be many readers who have not completed a Self Assessment return for several years and are maybe unsure as to whether they need to file a return for the 2022/23 tax year. There are financial penalties for failing to make a return to HMRC when one is required. Failing to deliver a return to HMRC by the deadline of 31 January 2024 will result in the following fixed penalties:
- Initial penalty of £100
- Where the failure continues beyond a 3-month period, a daily penalty of £10 to a maximum of £900
- Where the failure continues beyond 6 months, the penalty becomes the greater of 5% of any tax due had the return been filed and £300.
There are additional penalties after 12 months delay but for the purposes of this article let us now consider whether you need to submit a return and ensure therefore you do not become liable to penalties for failure to submit a return.
The main thing to consider is whether there has been a change in your circumstances compared to previous years when returns have not been required. Possible scenarios include:
- Recently becoming self-employed with more than £1000 income
- Receiving several sources of income
- Receiving untaxed income e.g., part-time online sales
- More than £100,000 income- (this is rising to £150,000 for the 2023/24 tax year)
- Income from a property including Airbnb
- Becoming part of a business partnership
- Claiming Child Benefit with themselves or their partner with income above £50,000
- Over £10,000 bank and building society interest.
- Over £10,000 from dividends
- Disposed of asset(s) e.g. property or shares, which may give rise to Capital Gains Tax
- Self-employed income below £1000 wishing to pay Class 2 NIC to protect State Pension and other benefits.
HMRC does provide an online checking tool for those who are uncertain:
For those who have already been filing Self-assessment returns the online checker can assist in identifying if a return is no longer required.
To file a return, you need to be registered for Self Assessment and if you are not registered you can register online:
If you do not file a return and one is required, then not only is there the issue of penalties but also the certainty of HMRC’s unwelcome attention going forward. Filing a return on time is an immeasurably better place to be than not filing and being subject to an HMRC Compliance check at a future point.
If readers need to any help or advice in deciding whether they need to file a return for 2022/23 tax year by 31 January 2024 please contact us at 01902 711370 or email firstname.lastname@example.org if you have any questions or require our expert assistance.