Those yet to register for self-assessment have just days left to do so – including those with side hustles and people who have recently started to work in a self-employed capacity.
People who have earned income from self-employment in the 2023/24 tax year (6th April 2023 – 5th April 2024) must register for self-assessment by HMRC’s deadline of 5th October.
Failure to could result in penalties and fines, says Qdos, a tax insurance specialist for the self-employed.
With just days until the deadline, Qdos is urging those who are yet to register to do so. Those required to complete the self-assessment for the first time must inform HMRC that they have earned income via self-employment. This includes those who:
- 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 payents and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000
HMRC may issue fines for late registration, and missing this deadline might also cause delays down the line when paying your self-assessment tax bill (due by midnight on 31st January 2025). Late payments will also result in penalties, with interest charged on top of any outstanding taxes due to HMRC.
Qdos CEO, Seb Maley, said, “HMRC issued an advisory a few months ago to alert people about the upcoming deadline. Not everyone will have been aware of it, though, and the deadline has continued creeping on up – now it’s imminent.
“It’s crucial that those who fit the bill as a self-employed worker – in whatever capacity – register for self-assessment by the 5th October deadline. Doing so means you’ll be well-placed to get a head start on the actual payment of your tax bill, well ahead of 31st January.
“As is the case with any tax deadline, missing the registration can easily land you with a penalty. It’s important to start off with your best foot forward. Getting things sorted as early as possible can help remove the stress from managing your tax affairs – and that’s especially true if you’re new to this way of working.”
