HMRC Self-Assessment - Notice to Complete a Tax Return

What the notice is about?

It is a reminder notice from HMRC to file a self-assessment tax return in order to avoid penalties and escape disciplinary actions.

What is a self-assessment?

Self-Assessment is the process by which you inform HM Revenue & Customs (HMRC) about your income, gains and relevant expenses for a tax year which HM Revenue & Customs (HMRC) uses to collect Income Tax.

Who needs to file self-assessment tax return?

We will need to send a tax return if, for the last tax year (6 April 2022 to 5 April 2023), you were self-employed as a sole trader and earned more than £1,000, a partner in a business partnership or on earning income more than a threshold. Check at https://www.gov.uk/check-if-you-need-tax-return to ensure if you need to submit a return.

What is the deadline to file this return?

You need to action this letter with an online return by

• 31 January following the end of the particular tax year or
• Within 3 months after the issue of this notice,

Whichever is later. Paper tax returns need to be sent by 31 October. We need to action on this letter even if we think that all the taxes have been paid, or we don’t owe any tax.

What are the penalties on avoidance of filing tax returns?

• Immediate delay from deadline would attract penalty of £100;
• another £10 would be accumulated if the delay gets more than 3 months for a maximum of 90 days;
• the higher of £300 or 5% of the tax due, once delay is made more than 6 months would be added to above bill; and
• A further £300 or 5% of the tax due (whichever is higher), once delay is made more than 12 months.