Don’t get caught by the £100 self assessment penalty

In addition to being the season for giving, it is almost the season for self assessment. Tax returns must be filed by 31 January 2025 and this deadline will be here before you know it.

There are strict rules regarding who needs to file a self assessment tax return and the requirement has broadened. It is no longer just for people who are self-employed. And if you do need to complete a tax return, it will need to be filed on time, even if you do not have any tax to pay. If you miss the deadline, you will automatically be charged a £100 penalty and daily interest on any tax outstanding.

Six reasons to file a self assessment tax return

You need to complete a tax return if you are:

• Self-employed as a ‘sole trader’ and earned more than £1,000;
• A partner in a business partnership;
• Earn total taxable income in excess of £150,000;
• Have to pay capital gains tax on disposed assets;
• Have to pay the High Income Child Benefit Charge;
• You may also have to file a return if you have untaxed income from property rental, tips, commissions, savings, investments, dividends, or overseas sources.

Bear in mind that if your circumstances have changed, i.e. you now earn more than £150,000 or have property income, you may need to complete a tax return for the first time. If you need to file but you have not received a notice to file from HMRC, you will need to register for self assessment in advance of 31 January and obtain the relevant logins to use the Government Gateway.

You may be eligible for tax reliefs or allowances that could reduce your tax bill, or, if you have incurred capital losses, these may be offset against taxable gains.

If you would like an expert to complete your tax return we offer a convenient service, contact us via partners@rjp.co.uk.