HMRC issues urgent '£1,000 warning' to people who could face fines if they miss deadline
His Majesty's Revenue and Customs (HMRC) has issued a stark warning about failing to file tax returns, which can result in financial penalties. In a post to X to today, the authority dismantled a widespread but damaging misconception.
"Myth: HMRC hasn't been in touch, so I don't need to file a tax return," the message read, adding: "Reality: You might need to do a tax return if you: Have earned more than £1,000 through a side-hustle. Are newly self-employed. Rent out a property. Use cryptoassets."
Ordinarily, salaried employees find their taxes handled through the PAYE system where the employer deducts tax directly. Yet, those with additional income streams, such as self-employed earnings, rental income, or capital gains, must take the initiative to disclose these to HMRC via a self-assessment tax return.
The consumer organisation, Which? explains: "If you receive any other income - such as from self-employment, property, capital gains, or dividends - you need to report this to HMRC by sending a self-assessment tax return."
Last year, the consumer champion estimates that over 12.1million people were expected to file a 'Self Assessment' tax form. The public can do this by filling out a form online or sending a paper copy - but for the latter, you'll need to request ' form SA100' by calling HMRC.
Beyond the four reasons outlined in HMRC's X post, its site also draws attention to various other circumstances you might need to fill in a tax return. These are outlined below:
You were self-employed as a 'sole trader' and earned more than £1,000 (before taking off anything you can claim tax relief on)
You were a partner in a business partnership
You had a total taxable income of more than £150,000
You had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
You had to pay the High Income Child Benefit Charge
You receive money from renting out a property
You receive tips and commissions
You receive income from savings, investments and dividends
You receive foreign income
To see if this applies to you, people are encouraged to use HMRC 's simple online checker tool, which is available in both English and Welsh. While the tool requires some financial details to work, it won't send your information to HMRC.
If you miss the deadline or fail to send a tax return at all within three months of October 5, you may face a penalty of £100. Beyond this, the fine will only increase and interest will be added.