Do you need to register for Self Assessment?

Self Assessment myths clarified to help you understand if you need to register with HM Revenue & Customs (HMRC) by 5 October 2024.

Self Assessment myths

HMRC has clarified some of the myths about who needs to file a Self Assessment tax return before the deadline of midnight on Friday 31 January 2025.

Myth 1 - HMRC hasn't been in touch, so I don't need to file a tax return.

Reality: It is the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for Self Assessment and file a return, including if they:

• are newly self-employed and have earned gross income over £1,000
• earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
• are a new partner in a business partnership
• have received any untaxed income over £2,500
• receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

Anyone who is unsure, can use the free online tool to check if they need to file Self Assessment. Once registered for Self Assessment, they will receive their Unique Taxpayer Reference, which they will need when completing their return and paying any tax that may be due. Customers will have to reactivate their account if they have registered for Self Assessment previously but did not send a tax return last year.

Myth 2 - I have to pay the tax at the same time as filing my return.

Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is midnight on Friday 31 January 2025. Customers may also be able to set up a Budget Payment Plan to help spread the cost of their next Self Assessment tax bill, by making weekly or monthly direct debit payments towards it in advance.

Myth 3 - I don’t owe any tax, so I don’t need to file a return.

Reality: Even if a customer does not owe tax, they may still need to file a Self Assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the State Pension.

Myth 4 - HMRC will take me out of Self Assessment if I no longer need to file a return.

Reality: You must inform HMRC if you have either stopped being self-employed or you don’t need to fill in a return, particularly if you have received a notice to file. If not, HMRC will keep writing to you to remind you to file your return. HMRC may also charge a penalty.

Customers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return. If customers think they no longer need to complete a tax return for the 2023 to 2024 tax year, they should tell HMRC online as soon as their circumstances change. Customers can watch HMRC’s YouTube videos on stopping Self Assessment to guide them through the process.

Myth 5 - HMRC has launched a crackdown on people selling their possessions online and now I will have to file a Self Assessment return and pay tax on the items I sold after clearing out the attic.

Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a Self Assessment and pay Income Tax on the sales. See HMRC’s guidance on selling online and paying taxes.

Self Assessment filing deadlines

You will need to file your Self Assessment tax return by one of the following deadlines, depending on how you plan to file:

See understanding Self Assessment and your tax return.

First published 27 August 2024