Self-Assessment Returns: Everything You Need To Know

Did you know that the 5^th October is the deadline for registering for Self-Assessment returns? If this deadline is missed HMRC have the right to charge you a penalty. This penalty is known as a ‘Failure to notify’ penalty and is based on the behaviour of the individual and the reasoning for not notifying HMRC, as well as a percentage of the ‘potential lost revenue’.

‘Potential lost revenue’ refers to the Income Tax, Class 4 NIC and Capital Gains Tax that becomes due. The penalty can be a maximum of 100% of this amount – the sooner you tell HMRC you are required to submit a tax return, the better.

In this article we’ll be delving into self-assessment returns and providing you with all the information you need to know ahead of submitting your return.

The Criteria for Self-Assessment Returns 2023/24:

• You were self-employed as a ‘sole trader’ and had gross earnings exceeding £1,000;
• You were a partner in a business partnership;
• Someone living in your household received Child Benefit and either of you had gross income for the year exceeding £50,000;
• You received foreign income (for dividends, those exceeding £500), rental income, income from an Estate or annual income from a Trust/Settlement;
• Your total annual gross income, from any sources, exceeded £150,000;
• You had Capital Gains exceeding £6,000, capital proceeds exceeding £50,000.
• If you dispose of a residential property in the tax year, this may result in a CGT Return being required to be submitted with 60 days of disposal in addition to a Self Assessment Tax Return; or
• You receive any other untaxed income exceeding £10,000, to include dividends, savings and investments

HMRC now receive details of an individual’s saving income directly from their UK bank. As such, those not needing to complete a Tax Return, but receiving taxable savings income, will notice adjustments to their PAYE Coding Notices, in order to collect the income tax arising.

WHEN DO I NEED TO FILE MY SELF-ASSESSMENT RETURN?

• If you opt for a paper Tax Return submission the filing deadline is 31 October 2024.
• There is an exemption if you are deemed by HMRC to be unable to file online. This is generally ministers of religion, Lloyds underwriters, Court Judges and persons living abroad as non resident. In those circumstances, the deadline for a paper Tax Return submission is 31 January 2025.
• Electronically filed Tax Returns have a submission deadline of 31 January 2025.

There are occasions where HMRC have issued your Tax Return later than usual and they notify you of an extended filing deadline. The window is usually three months from the date of issue.

Your Tax Return can be submitted any time from 6 April 2024 and we would always recommend early completion.  There are various benefits to this but the main three are:

• As much notice as possible of the 31 January 2025 tax payment amount to enable you to prepare and plan financially for this.
• To secure early closure of HMRC’s twelve-month enquiry window.
• Your peace of mind to know it is out of the way!

In addition, individuals who have an income tax liability for 2023/24 of £3,000 or less can opt to have the liability collected via their PAYE tax coding notice for the 2025/26 tax year. In order to benefit from this the Tax Return must be submitted by 31 October 2024 for a paper Tax Return, or 30 December 2024 for an electrically filed Tax Return.

What happens if you no longer meet the criteria for self-assessment returns and hmrc have issued a notice to file?

If you have received a notice to file, and you do not meet the above criteria and you do not owe any tax liability, a request can be made for the tax return to be withdrawn. If HMRC agrees that you no longer require to file a tax return, then they will formally write to you confirming their agreement to remove you from the Self-Assessment system.

Summary of Key Dates and Deadlines

Self-Assessment Deadlines
Registration for Self Assessment for 2023/24	By 5 October 2024
Submission of a 2023/24 paper tax return and  coding out the tax via PAYE for paper tax returns	By 31 October 2024
Tax to be collected via tax code for an online  Tax return submission	By 30 December 2024
Submission of online tax return	By 31 January 2025
Balancing tax payment for 2023/24 and first  Payments on account for 2024/25	By 31 January 2025

If you would like any further information regarding any of the points mentioned above, or if you would like any advice or help with completing your Self-Assessment Tax Return, then please get in touch with Laura Hodgson, Adrian Gill, David Carr, Amy McLaughlin or your usual AAB contact.

Find out more about our Private Client Tax team. 

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