100 days to go to self assessment tax deadline

HMRC is reminding taxpayers including anyone earning income from side hustles that they have 100 days left to submit their online self assessment tax return ahead of the deadline on 31 January 2024

With the clock ticking down, taxpayers can find various types of help from webinars to step by step guides online.

In addition, for more complex enquiries the HMRC self assessment helpline is now available again after the summer closure but HMRC stressed that taxpayers should use online services to try to resolve issues before contacting the tax authority by phone.

New self assessment taxpayers could be someone who has set up a side hustle to earn money in addition to their PAYE job; disposed of cryptoassets; become newly self-employed or a landlord renting out property for the first time.

Anyone who is self-employed is required to file a self assessment return, whether they are a sole trader or in partnership. This includes people who work in the gig economy or have a second income from trading on eBay and similar websites, earn money as influencers and from advertising on social media channels.

Likewise, anyone receiving income from renting out property through sites like Airbnb need to file a tax return if their earnings exceed £1,000.

Gains on cryptoasset sales are liable for capital gains tax and must be reported on annual returns.

It is also very important to note that the higher rate child benefit charge kicks in for all earners with income over £50,000 and must be reported on a self assessment tax return.

Whatever the circumstances, if a taxpayer has any income that they have not already paid UK tax on, they need to register for self assessment. Anyone who needs support to complete their return for the 2022 to 2023 tax year can access the online help available on gov.uk. It explains how to access HMRC’s services and ask for help, without having to call.

Completing a tax return sooner means that taxpayers can find out what they owe and can work out how to pay between now and the deadline.

Myrtle Lloyd, HMRC’s director general for customer services, said: ‘My advice for anyone completing their self assessment is to get prepared and, if they need extra support, to access HMRC’s free online help and resources. Search ‘self assessment’ on gov.uk to find out more.’

If anyone thinks they no longer need to complete a self assessment tax return for the 2022 to 2023 tax year, they should tell HMRC as soon as possible to avoid any penalties. HMRC has produced two videos explaining how taxpayers can go online and stop self assessment if they are self-employed and those who are not self-employed.

Taxpayers can settle tax bills through the HMRC app. If they cannot pay in full, HMRC said it ‘wants to help them to find an affordable way for them to pay the tax they owe. If customers owe less than £30,000, they may be able to set up a time to pay arrangement and do this online without speaking to HMRC’.

HMRC also warned people to be aware of the risk of falling victim to scams and stressed that taxpayers should never share their HMRC login details with anyone, including a tax agent, if they have one.

Sara White |Editor, Accountancy Daily

Sara White is editor of Accountancy Daily...

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