Workers in the UK have been issued a reminder by HM Revenue and Customs (HMRC) regarding income thresholds. If you have earned over £1,000, you may need to complete a tax return. However, this requirement applies only to certain individuals and depends on the type of work undertaken.
HMRC Social Media Reminder
In a post on social media platform X, HMRC urged people to check if they need to fill out a tax return. The message specifically highlighted those who have earned more than £1,000 through a side hustle, as well as newly self-employed individuals, landlords, and new partners in a business partnership.
Who Needs to Complete a Tax Return?
According to HMRC, you may need to complete a tax return if you are:
- Newly self-employed
- A landlord
- A new partner in a business partnership
- Earned more than £1,000 through a side hustle
HMRC stated: “Unsure if you might need to complete a tax return? You may need to if you’re: Newly self-employed, a landlord, a new partner in a business partnership, or earned more than £1,000 through a side hustle. Check using our free online tool.”
Government Guidance on Income Tax
On the Government website, it further explains that income tax is usually deducted automatically from wages and pensions. However, people and businesses with other income must report it in a Self Assessment tax return. GOV.UK says: “If you need to send a Self Assessment tax return, fill it in after the end of the tax year (5 April) it applies to. You must send a return if HMRC asks you to. You may have to pay interest and a penalty if you do not file and pay on time.”
Deadlines for Tax Returns
There are strict deadlines for tax returns. You must tell HMRC by October 5 if you need to complete a tax return for the previous year and you have either not sent a tax return before, or registered before but did not need to send a tax return for the tax year 2024 to 2025. You could be fined if you do not inform HMRC by this date.
To fill in your return, you need to keep records such as bank statements or receipts to ensure accuracy. Separate deadlines apply for paying your tax bill, which are usually:
- January 31 – for any tax you owe for the previous tax year (balancing payment) and your first payment on account
- July 31 – for your second payment on account
How Much to Pay
HMRC will calculate what you owe based on your reported income. The amount of tax you pay depends on your Income Tax band. There is a different rate for Capital Gains Tax if you need to pay it, for example, if you sell shares or a second home.
For more information on help filling in your return, visit the official GOV.UK website.
