Are you usually required to submit a Self Assessment tax return? If so, you may no longer be obligated to file a return from this tax year (2023/24) onwards. The Self Assessment threshold for PAYE only taxpayers will increase from £100,000 to £150,000, meaning that fewer taxpayers will need to submit their returns for this tax year, reducing the administrative burden that many are usually subject to.
If you earn between £100,000 and £150,000 for the 2022/23 tax year, you will still be required to submit a tax return by 31st January 2024. Following this, you will receive a Self Assessment exit letter from HMRC, unless you fall under other aspects of the criteria.
These criteria are:
- if you are self employed as a sole trader and earned more than £1,000 (before claiming tax relief); and
- if you are a partner in a business partnership.
Similarly, you may have to submit a Self Assessment tax return if you have other untaxed income, such as:
- COVID-19 grants or support payments
- money from renting out property
- tips and commissions
- income from savings, investments and dividends
- foreign income
There may be other reasons that you submit a tax return, such as if you would like to claim certain income tax reliefs, or prove that you are self-employed (for example, to claim tax free childcare or maternity allowance).
If you haven’t received a Self Assessment exit letter but think that you don’t need to send a tax return then you must inform HMRC. If they agree that this is the case, then they will confirm via postal communication. It is likely that you may no longer need to send a return if you are:
- no longer self-employed
- below the income threshold
Deadlines and penalties
There are strict penalties for late Self Assessment returns, so it’s important to make sure that you’re prepared for the following deadlines:
- 5th October 2023 – Register for Self Assessment if you’re self-employed or sole trader, not self-employed, or registering a partner/partnership.
- Midnight 31st October – Paper tax returns.
- Midnight 31st January 2024 – Online tax returns.
- Midnight 31st January 2024 – Pay the tax you owe.
If you are a Harold Sharp client you will have already received correspondence with a personalised deadline based on your sources of income to enable us to ensure a timely submission.
If you are late submitting your Self Assessment return or paying your tax bill, then you will receive a penalty. There is a late filing penalty of £100 if you are up to three months late, but you’ll be fined more if it is any later. For late payments, you will be subject to an interest charge. However you are able to appeal against a penalty if you have a reasonable excuse.
If you would like further advice about submitting a Self Assessment return, please do not hesitate to contact our Tax Team at email@example.com or give us a call on 0161 905 1616.