ANYONE who started a side hustle this year has just hours to make an urgent check or risk a hefty fine.
The deadline to register as a new self-assessment taxpayer with HM Revenue & Customs (HMRC) is just hours away.
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It is usually for those who are self-employed but if you’ve started a side hustle and have not registered before, then you could also be affected.
This is for the tax year from April 6 2022 to April 5 2023.
It basically means telling HMRC that you’ll soon need to complete a tax return.
You only have until 11.59pm tonight (October 5) to tell the taxman that you need to register as a self-assessment taxpayer.
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If you don’t, then you risk having to pay a hefty fine as big as £100.
It comes as the coronavirus pandemic and cost of living crisis meant many of us thought of new ways to make some extra cash.
You can earn up to £1,000 without paying tax thanks to the trading allowance.
According to HMRC, the odd jobs you can claim tax-free include money made at car boot sales, online selling or auctions.
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It could also include money made from food delivery or by charging other people for using your equipment or tools.
Once you earn more than £1,000 a year, you need to complete a self-assessment tax return and start paying tax on your extra earnings.
How much that is will depend on how much you already earn.
Who needs to register?
If you fall under any of the below circumstances, then you’ll need to register for self-assessment tax, according to Turn2Us:
- Your income from self-employment was more than £1,000
- You got more than £2,500 from renting out property
- You got more than £2,500 in other untaxed income
- You had a P800 from HMRC saying you did not pay enough tax last year
- You need to prove you’re self-employed, for example, to claim Tax-Free Childcare
- You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits
How do I register as a taxpayer?
To register as a taxpayer online, head to the HMRC website and search “check how to register for self-assessment”.
You’ll then be able to check if your side hustle applies and you can then register as a taxpayer.
If you do need to register, you can then follow the instructions on the HMRC website.
Tonight’s deadline is just for those who have never registered for a self-assessment tax return.
If you have – or you’ve paid your own tax before – then you don’t need to do anything today.
The deadline for filing your self-assessment tax return by post is October 31.
If you miss the deadline by up to three months you will be charged a £100 penalty.
If you miss the deadline by over three months you will be charged more on top of this.
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But don’t worry as if you don’t send your paper form on time, you can fill out your tax return online.
You have to do by January 31, 2024.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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