Self-assessment deadline approaching: who needs to register before October 5 for the tax return deadline?

There are only two days left to file a paper tax return, but other taxpayers may also need to file before January.

Frozen tax exemptions, rising savings rates and cuts to dividend and CGT exemptions mean more people will have to file a tax return for the 2023/24 tax year.

Most people will wait until January to file their self-assessment returns online, but those filing a paper tax return must register by October 5.

However, if you are also new to completing the self-declaration, you must also report your income to the tax authorities before October 5, so that you can pay any tax no later than January 2025.

If you’re new to renting out a property or have started selling items online, you could face fines if you don’t register.

We explain how the process works and who must register by the end of this week.

When must the self-declaration tax return be filed?

If you are self-employed and have your own business or sole proprietorship, you usually have to file your tax return by January 31st.

If you want to file a paper tax return, you must file it before October 31.

However, you must notify HMRC by October 5 if you need to complete a tax return and have not previously submitted it. If you don’t, you could be fined.

If you choose to file your tax return before January 31, you do not have to pay the tax immediately.

HMRC says: ‘Even if someone files their return today, the deadline for customers to pay the tax due for the 2023 to 2024 tax year is January 31, 2025.’

Taxpayers can set up a payment plan to spread the cost of their tax bill and make weekly or monthly payments.

Who should register for self-assessment?

One of the biggest myths when it comes to self-assessment returns is that if HMRC hasn’t been contacted, you don’t need to file a tax return.

However, it is your responsibility to find out whether you need to file a tax return, especially if you have just started being self-employed or have been earning income from a side job.

HMRC say there are a number of reasons why someone should register for a self-assessment, for example if you:

• Are newly self-employed and have earned a gross income of over £1,000

• You have earned less than £1,000 and want to pay Class 2 National Insurance contributions to protect your entitlement to a state pension and other benefits

• Are a new partner in a business partnership

• Have received tax-free income of more than £2,500

You will usually also need to register to report any tax-free income from investments, such as renting out your home, or profits from investments outside an Isa.

However, you should check whether you are entitled to various allowances and concessions, including the ‘rent a room’ deduction.

This is available for the first £7,500 of income arising from renting out a room in your main home.

If you have sold real estate or assets and recorded a capital gain, you may need to file a tax return.

If you have sold a second home or shares and made significant profits in excess of the capital gains tax allowance, you must declare this through self-assessment.

Do I have to file a tax return when selling online?

Earlier this year, HMRC introduced new rules requiring online marketplaces to collect information about users, to crack down on online resellers who fail to declare their income.

This caused some confusion as to whether this means people selling old clothes or unwanted gifts would be charged taxes on sales on eBay and other sites.

However, the rules have not changed and sellers only have to pay tax if their income exceeds a certain threshold.

You may have to pay tax if you are classed as a ‘trader’ (who regularly sells goods or services) on anything you earn over €1,000.

If you clear away old clothes that you no longer need, and for less than what they cost, you will not be classified as a ‘trader’.

Do I have to file a tax return even if I don’t owe any tax?

Another common misconception is that if you don’t owe the taxman any money, you don’t have to file a return.

But you must complete a return, even if you don’t have to pay tax, to claim a tax refund and certain exemptions for business expenses, charitable donations and pension contributions. You must also declare if you pay class 2 voluntary NI contributions to protect your entitlement to the state pension and other benefits.

Do I need to tell HMRC if I no longer need to file a return?

If you no longer need to file a return, you must inform HMRC as soon as possible.

This may be because you have stopped renting out a home, no longer have to pay child benefit with a high income or if your income has fallen below € 150,000.

Otherwise, the tax authorities will continue to write to you and a late payment penalty may be charged.