The self-assessment deadline is approaching: Who should register before October 5?

There are only two days left to register a paper self-assessment tax return, but other taxpayers may also need to file before January.

Frozen tax reliefs, rising savings rates and cuts to dividend and CGT allowances mean more people will need to file a tax return for the 2023/24 tax year.

Most people wait until January to file their self-assessment return online, but those filing a paper tax return will need to register by October 5.

However, if you are also new to completing self-assessment, you must also notify the taxman of your income by October 5, so that you can pay any tax before January 2025.

If you are new to renting property or have started selling items online, you could face fines if you don’t register.

We explain how the process works and who needs to register before the end of this week.

When does the self-assessment declaration expire?

You generally need to file your tax return by January 31 if you are self-employed and run your own company or operate as a sole trader.

If you want to file a paper return, you must file it by October 31.

However, you must inform HMRC by 5 October if you need to complete a tax return and have not submitted one before. You could be fined if you don’t.

If you choose to file your return before January 31, you don’t need to pay the tax right away.

HMRC says: “Even if someone files their return today, the deadline for customers to pay any tax due for tax year 2023 to 2024 is 31 January 2025.”

Taxpayers can set up a payment plan to spread the cost of their tax bill and make weekly or monthly payments.

Who should register for the self-assessment?

One of the biggest myths when it comes to self-assessment returns is that if you haven’t been in touch with HMRC, you don’t need to file a tax return.

However, it is your responsibility to determine whether you need to complete a tax return, especially if you are newly self-employed or have earned income from a side job.

HMRC say there are several reasons why someone should register for a self-assessment, including if you:

• They are new self-employed and have earned gross income over £1000.

• You earned less than £1,000 and want to pay Class 2 National Insurance contributions to protect entitlement to the state pension and other benefits.

• He is a new partner in a business partnership.

• Have received tax-free income over £2,500

You will usually also need to register to declare any tax-free gains from investments such as renting out your property or gains made from investments outside of an Isa.

However, it is worth checking whether you are entitled to various allowances and allowances, including ‘rent a room’ allowance.

This is available for the first £7,500 of income from renting a room in your main residence.

If you sold property or assets and made a capital gain, you may need to file a return.

If you sold a second property or shares and made a significant profit that exceeds your capital gains tax allowance, you will need to declare this using a self-assessment.

Do I need to file a tax return for selling online?

Earlier this year, HMRC introduced new rules requiring online marketplaces to collect information about users to crack down on online resellers who fail to declare their income.

This caused some confusion over whether that means people selling old clothes or unwanted gifts would pay taxes for selling on Ebay and other sites.

However, the rules have not changed and sellers will only have to pay taxes if their profits exceed a certain threshold.

You could have to pay tax if you are classed as a “trader” (regularly selling goods or services) on anything you earn over £1,000.

If you are removing old clothes that you no longer want and for less than it costs to buy them, then you will not be classified as a “dealer.”

Do I need to file a return even if I don’t owe any tax?

Another common mistake is thinking that if you don’t owe the taxman money, you don’t have to file a return.

But you will need to complete a return, even if you don’t have to pay tax, to be able to claim tax refunds and certain allowances on business expenses, charitable donations and pension contributions. You will also need to file a return if you pay voluntary Class 2 NI contributions to protect your entitlement to the state pension and other benefits.

Should I tell HMRC if I no longer need to file a return?

If you no longer need to file a return, you will need to notify HMRC as soon as possible.

This could be because you have stopped renting a property, you no longer need to pay the high income child benefit charge or if your income has fallen below £150,000.

Otherwise, the tax office will continue to write to you and you may be charged a late payment penalty.