Get ready for Making Tax Digital for Income Tax (ITSA)
Self assessment tax returns, AKA personal tax returns are the returns that must be filed to HMRC on an annual basis to declare and pay the tax on any personal untaxed income, or to claim a repayment.
You will usually need to file a tax return if one of the following applies to you:
Untaxed Income
- You’re employed and earned over £100k in the tax year
- You earned over £1k from your side hustle (note that side hustle income of less than £1k is not taxable and does not even need declaring to HMRC. Be careful though, this relates to turnover, not profit)
- You earned income from property of over £2.5k (note that property income of less than £1k is covered by the property allowance and is therefore not taxable. For property income of between £1k and £2.5k call HMRC on 0300 200 3300 to let them know)
- You earned over £10k from dividends – not from a stocks and shares ISA as these are tax free (note that for dividends of between £1k and £10k you can opt to file a tax return if you prefer, or you can call HMRC on 0300 200 3300 and ask them to change your tax code instead – less admin)
- You made over £6k of gains on investments (for example selling stocks and shares not held in an ISA). Note that for the sale of residential property you will have to file a Capitals Gains Tax due on UK residential property return instead
- You received any foreign income
- You earn over £50,000 and you (or your co-parent) receive child benefit
Claiming a Refund or Repayment
- Your work in the Construction Industry and have tax withheld from the labour element of your invoices
- You’ve made investments in SEIS or EIS eligible companies, or VCT funds
- You made private pension contributions as a higher rate taxpayer
- You have expenses of your employment (that your employer hasn’t reimbursed to you) that total more than £1k
- You are entitled to marriage allowance as your spouse or civil partner earns less than £12,570 and you earn less than £50,270.
- Or simply if HMRC send you a notice to complete (even if you think that none of the above circumstances apply to you, you must still complete and file a tax return if HMRC issue a notice to do so).
The Tax Year
The tax year runs from 6th April to the following 5th April, with the relevant filing deadline being the following 31st January.
So if you need to file a tax return for the tax year April 2023 to April 2024 (the 2023/24 tax year), your corresponding filing deadline is 31st January 2025.
Any taxation due will also need to be paid to HMRC on or before this date. The other taxation payment dates that you need to be aware of is the payments on account regime.
Payments On Account
If your tax liability exceeds £1,000, you are also required to make payments on account towards the following year’s liability.
Payments on account are essentially a forward payment of the tax that will be due for the next year. HMRC request these payments as your liability increases in an effort to reduce non payment of tax in the future.
The way HMRC calculate this, is 50% of the tax that is due for the prior year. Two of these 50% payments are due throughout the year – one on 31 January and the other on 31 July.
As a TaxGem client you can be safe in the knowledge that your return is prepared in the most efficient way possible taking full deductions for all available expense claims, you will get notified of any tax due and details of how to pay (including payments on account) and we will deal with HMRC correspondence on your behalf.
Get in touch to start your journey with us.
Are you ready?
Get ready for Making Tax Digital for Income Tax (ITSA)
There is an upcoming change that you need to be aware of from 6 April 2026, if your turnover from your self employment business, or property income exceeds £50,000.
Get in touch to ensure you’re fully up to date with changes.