HMRC has issued a warning to anyone with income over £1,000 or over £50,000 this year.
The tax office has issued fresh advice to households across the UK who are currently working, either employed on pay as you earn (PAYE) or self-employed, and earning more than certain thresholds will allow before you have to pay tax.
His Majesty’s Revenue and Customs is keen to make sure those who do owe tax this year get in touch and pay what they owe before the January 31, 2025 online deadline which is rapidly approaching.
And the government organisation has issued a not-so-gentle reminder to those who are eligible to pay tax directly to HMRC which could be in addition to what they are already taxed on their income.
It said that anyone who is ‘newly self employed’ and has earned “gross income over £1,000” – that’s income before expenses and deductions are removed, not your final profit – must register for Self Assessment Tax Returns as they may owe tax.
Anyone who has also received “any untaxed income” of more than £2,500 must also get in touch, HMRC warned. This could even be a gift or the sale of a high ticket item like a TV or a watch, although it doesn’t apply to selling a car.
And finally, anyone earning over £50,000, HMRC says, may need to pay the High Income Child Benefit Charge because “they or their partner earned more than £50,000”.
The threshold for repayment of the High Income Child Benefit Charge was changed this year to £60,000, but this tax return submitted in January 2025 would cover the period April 1 2023 to March 31, 2024 so would still go be based on the £50,000 threshold before it was raised.
HMRC said: “HMRC hasn’t been in touch, so I don’t need to file a tax return.”
Reality: It is the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year.
“There are many reasons why someone might need to register for Self Assessment and file a return, including if they: are newly self-employed and have earned gross income over £1,000; earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits; are a new partner in a business partnership; have received any untaxed income over £2,500; receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000.”
