Millions of taxpayers have just days to register for self-assessment tax return or risk being fined
Millions of taxpayers have just days to register for their tax returns or risk being fined
Millions of taxpayers have just days to register to file a tax return or risk being fined.
The tax return is an online or paper form that must be submitted to the Tax Authorities every year by those who receive extra money in addition to their primary income.
More than 12 million people file tax returns every year, but experts say thousands more may have to do so for the first time this year due to inflation, a freeze or lowering of tax thresholds and rising savings rates.
Registration can be done online at gov.uk/register-for-self-assessment or call 0300 200 3310. This must be done before October 5.
Here are five reasons why you may need to register:
Self-assessment: The declaration is an online or paper form that must be submitted annually to the Tax Authorities by those who receive extra money in addition to their primary income
1. You earn more than € 1,000 per year with your hobby. You can earn up to £1,000 from side hustles such as selling home-made or second-hand items online without paying tax or completing a tax return.
2. You earn more than € 10,000 in savings interest or dividends per year. If you earn between €1,000 and €10,000, you can usually pay by asking the tax authorities to adjust your tax code so that it is deducted from your salary or pension.
3. You can earn more than £7,500 a year by renting out a room in your house to a tenant, either as a holiday home, or on Airbnb. If you earn less, you do not have to pay tax and you do not have to register for self-assessment.
4. You earn more than €6,000 in capital gains. A capital gain is the profit you make when you sell something that has increased in value. You can earn up to €6,000 tax-free, but after that you have to pay tax. From April 2024 this will halve again to £3,000.
5. You are older and earn more than €50,000 per year. Employees with an income of more than €50,000 must pay the high child benefit tax. For every €100 you earn above the threshold, you must pay back 1 percent of the full benefit. As soon as your income exceeds €60,000, you must repay your child benefit in full.