HMRC issues reminder for self-assessment tax returns

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HMRC issues reminder for self-assessment tax returns

HM Revenue and customs has issued a reminder for those who are due to fill a self-assessment tax return for the 2022/23 tax year. Britons taking on more money-making initiatives to help with the cost of living, many may find themselves liable to pay additional tax. HMRC notes that new self assessment customers could be someone who has set up a side hustle to earn money in addition to their day job or disposed of cryptoassets, and may be newly self-employed or a new landlord rent-out property. The UK had a workforce of around 4.24 million self-employed workers as of July 2023. If a customer has 'any income that they have not already paid UK tax on', they will need to register for a self-assessment. HMRC's director of customer service, Myrtle Lloyd, said: If you are new to Self Assessment and unsure how the process works - HMRC is here to help.

When customers need to complete their tax returns, they can use HMRC's online checking tool. The step-by-step guide is available online for users to check what they need to file.

After registering for the assessment, customers will receive a unique Taxpayer Reference, which they will need when completing their return. On January 31, 2024, the deadline for filing the return online and paying taxes owed for the 2022-to-2023 tax year is 31 January 2024. The tax authority said that 96 percent of customers filed their returns online last year. It allows people save their progress and finish it later, while also having 'added reassurance' that HMRC has received their form when they press submit.

If customers want to avoid penalties by not completing their self-assessment tax return for the 2022 to 2023 tax year, they must tell HMRC before the January 31 deadline to avoid penalties. A penalty of up to 100 pounds is issued if a tax return is one day late. People have to pay even more if they're later, and interest, making it a costly mistake to make. HMRC stressed the importance of being careful to scams and urged customers to 'never' share their HMRC login details with anyone, including a tax agent, if they have one.