HMRC Urges Workers to Check Tax Return Requirements
HM Revenue and Customs (HMRC) has issued a reminder that individuals earning more than £1,000 from certain sources may need to complete a Self Assessment tax return. The warning applies specifically to those who are newly self-employed, landlords, new partners in a business partnership, or anyone who earned over £1,000 through a side hustle.
In a post on social media platform X, HMRC, the tax authority under the Labour government, encouraged people to use its free online tool to determine if they need to file. The authority stated: “Unsure if you might need to complete a tax return? You may need to if you’re: newly self-employed, a landlord, a new partner in a business partnership or if you earned more than £1,000 through a side hustle. Check using our free online tool.”
Income Tax Usually Deducted Automatically
On the government website, HMRC explains that income tax is “usually” deducted automatically from wages and pensions. However, individuals and businesses with other income “must report” it in a Self Assessment tax return. The agency added: “If you need to send a Self Assessment tax return, fill it in after the end of the tax year (5 April) it applies to. You must send a return if HMRC asks you to. You may have to pay interest and a penalty if you do not file and pay on time.”
The key deadline is October 5. Taxpayers must inform HMRC by this date if they need to complete a return for the previous tax year and have either never sent one before, or previously registered but did not need to file for the 2024 to 2025 tax year. Failure to notify HMRC by October 5 could result in a fine.
Keeping Records and Payment Deadlines
To accurately fill in the tax return, individuals must keep records such as bank statements or receipts. HMRC will calculate the tax owed based on the information reported. The amount of tax payable depends on the Income Tax band the taxpayer falls into. Additionally, a different rate applies for Capital Gains Tax, which may be due on profits from selling shares or a second home.
Separate deadlines exist for paying the bill. HMRC advises that filing and paying on time is crucial to avoid interest charges and penalties. The tax return must be submitted after the end of the tax year on April 5, and the payment deadline typically falls on January 31 following the end of the tax year.
