HMRC debunks top five self assessment 'myths'

29 Aug 2024

HMRC has clarified some common myths about self assessment tax returns.

HMRC stated that there are 'plenty of myths' about who must file a self assessment return before the 31 January 2025 deadline. These include:

• 'HMRC hasn't been in touch, so I don't need to file a tax return.' - It is the individual's responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year.
• 'I have to pay the tax at the same time as filing my return.' - Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is 31 January 2025.
• 'I don't owe any tax, so I don't need to file a return.' - Even if a customer does not owe tax, they may still need to file a self assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions or to pay voluntary Class 2 National Insurance Contributions (NICs).
• 'HMRC will take me out of self assessment if I no longer need to file a return.' - Customers should tell HMRC if they have either stopped being self-employed or they don't need to fill in a return, particularly if they have received a notice to file.
• 'HMRC has launched a crackdown on people selling their possessions online and now I will have to file a self assessment return and pay tax on the items I sold after clearing out the attic.' - Despite speculation online earlier this year, tax rules have not changed in this area.

HMRC said it has a wide range of resources to assist taxpayers with self assessment, including information on registering for self assessment and receiving their Unique Taxpayer Reference, which is needed when completing a tax return and paying any tax that may be due.

Myrtle Lloyd, Director General for Customer Services at HMRC, said: 'We want to make sure you are clear about your tax responsibilities. These myth busters and our range of resources on GOV.UK can help if you are unsure if Self Assessment applies to you or think you no longer need to file a tax return. Just search 'self assessment' on GOV.UK to find out more.'