HMRC urges three groups to check tax due this year or face penalties

The clock is ticking for those who need to register for Self Assessment, with HMRC issuing guidance for first-timers as the deadline looms. In a post on X, the department advised: "Check if you need to register for #SelfAssessment for the first time by 5 October. You might need to if you: Have earnt more than £1,000 through a side-hustle, are self-employed, rent out a property."

The Gov.uk website offers a handy checker tool for people to determine if they may need to submit a tax return, without sending details to HMRC. Those liable for tax under Self Assessment during the 2024/2025 tax year must inform HMRC by registering before October 5, 2025. Registration after this date is possible but may result in a penalty.

If you previously registered but did not send a tax return last year, you'll need to re-register this year to reactivate your account.

Official guidance states that between April 6, 2024 and April 5, 2025, people in the following categories must send a tax return:

• Self-employed as a sole trader and earned more than £1,000
• Partner in a business partnership
• Had to pay Capital Gains Tax when disposing of something that increased in value
• Had to pay the High Income Child Benefit Charge

People who have earned a certain amount through untaxed income may also need to submit a tax return. This includes those who have made money from:

• Renting out a property
• Tips and commissions
• Income from savings, investments and dividends
• Foreign income

In rare instances, people may need to send a tax return to claim some Income Tax reliefs, prove they are self-employed in order to claim entitlements like Tax-Free Childcare or to make voluntary National Insurance contributions.

Once you've registered for Self Assessment, it's crucial to pay your tax bill by 31 January to avoid any penalties. HMRC suggests setting up monthly or weekly payments to help budget for this bill.