HM Revenue and Customs (HMRC) has announced an important deadline on Monday, October 5, that could lead to financial penalties for some taxpayers. Individuals not currently registered for self-assessment must notify HMRC by this date if they believe they need to file a tax return.
This notification requirement is detailed in HMRC’s online guidance. Tax expert Mike Warburton warns that missing the deadline may result in penalties for late submission of the tax return.
Mr Warburton explained: “This penalty is separate from any failure to notify penalty. If no tax is owed, taxpayers can request HMRC under EM4551 to consider removing the penalty. This approach has helped some taxpayers before, such as a reader named Jean.”
Finance specialist Michele Tieghi, founder of PsyFi Money, outlined common reasons to register for self-assessment. She said: “If you have earned more than £1,000 from self-employment or a side hustle during the previous tax year, you must notify HMRC. Earnings up to £1,000 are tax-free, but beyond this, tax payments and self-assessment registration are necessary.
“Additionally, if you have made money from selling stocks and shares outside an ISA, you can earn up to £3,000 tax-free each year. Amounts above this are liable for capital gains tax, requiring self-assessment registration.”
Tieghi added: “Dividends from shares have a tax-free allowance of £500 before self-assessment registration is required.”
Mr Warburton noted that individuals may choose to submit a self-assessment return even without receiving a notice from HMRC. Such submissions are considered voluntary.
He emphasised the importance of accuracy: “Both taxpayers and HMRC must adhere to the HMRC Charter. Taxpayers who show they took reasonable care when providing information may receive more lenient treatment on penalties.”
Tieghi reassured that registering for self-assessment is straightforward: “The process is completed online via the government website, requiring basic information about why you think registration is needed. Keep your Government Gateway ID and National Insurance number ready, as these are required to proceed. Detailed financial data is not necessary at this stage.”
Regarding the deadline, Tieghi explained: “First-time registrants, or those re-registering after a previous cancellation, must complete registration by October 5 to avoid late fees. Sometimes these fees can be waived if all owed tax is paid on time.”
She also mentioned separate deadlines for submitting tax returns: “Paper tax returns must be filed by October 31, while digital submissions have until January 31 to be submitted. Missing these deadlines results in penalties starting at £100 and increasing if unpaid.”
A HMRC spokesperson stated: “Our guidance aims to support consistent application of legislation and is one of several resources available. Decisions on failure to notify penalties are not based solely on a single guidance article.”