Millions of taxpayers have just days to register for a self-assessment tax return or risk being slapped with a fine.
The return is an online or paper form that must be submitted to Revenue & Customs each year by those who receive additional cash outside their primary income.
More than 12 million people file a tax return each year, but experts say thousands more may need to do so for the first time this year as a result of inflation, a freeze or cut in tax thresholds and rising savings rates.
Registration can be done online at gov.uk/register-for-self-assessment or call 0300 200 3310. It must be done by October 5.
Here are five reasons why you may need to register:
Self-assessment: The return is an online or paper form that must be submitted to Revenue & Customs each year by those who receive additional cash outside their primary income
1. You make more than £1,000 a year from a hobby. You can earn only up to £1,000 through side hustles such as selling homemade or second-hand items online without paying tax or filling out a tax return.
2. You earn more than £10,000 in savings interest or dividends a year. If you earn between £1,000 and £10,000, you can usually pay by asking the Revenue to adjust your tax code so it is taken from your salary or pension.
3. You earn more than £7,500 a year by renting out a room in your home to a lodger, or as a holiday let, or on Airbnb. If you earn less than this, there is no tax to pay and you do not need to register for self-assessment.
4. You earn more than £6,000 in capital gains. A capital gain is the profit you make when you sell something that has increased in value. You can earn up to £6,000 tax-free, but after this point you need to pay tax due. From April 2024 this halves again to £3,000.
5. You are a parent and earn more than £50,000 a year. Workers with an income of more than £50,000 must pay the high income child benefit tax charge. For every £100 earned over the threshold you must repay 1 per cent of the full benefit. Once your income exceeds £60,000 you need to repay all of your child benefit.
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This post first appeared on Dailymail.co.uk
