HMRC warning to anyone earning over £1,000 or £50,000 - what you need to do

HMRC has issued a fresh warning to households across the country who are currently in work

HM Revenue and Customs (HMRC) has issued a stark reminder to individuals with an income exceeding £1,000 or over £50,000 this year. The tax authority has delivered new guidance for UK households where members are working, whether through PAYE as employees or as self-employed persons.

It is imperative for those earning above specific thresholds, which necessitate tax payments, to ensure compliance. HMRC emphasises the importance of settling any due taxes before the fast-approaching online deadline of January 31, 2025.

Additionally, HMRC has issued a firm nudge to those who need to pay taxes directly to the agency, which may be supplementary to what they already pay on their income. Specifically, HMRC points out that "newly self-employed" individuals with "gross income over £1,000" before expenses and deductions must register for Self Assessment Tax Returns as they might owe tax.

Also, anyone receiving "any untaxed income" above £2,500 must report it to HMRC, which could stem from gifts or sales of high-value items, excluding car sales. Furthermore, HMRC highlights that individuals earning more than £50,000 may be liable for the High Income Child Benefit Charge if "they or their partner earned more than £50,000".

The threshold for the High Income Child Benefit Charge was altered in this year to £60,000; however, tax returns submitted in January 2025 should adhere to the old £50,000 threshold since they cover the period from April 1, 2023, to March 31, 2024, reports the Express.

It's up to individuals to figure out if they're required to submit a tax return for the 2023 to 2024 tax year. A spokesperson added: "There are many reasons why someone might need to register for Self Assessment and file a return, including if they: are newly self-employed and have earned gross income over £1,000; earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits; are a new partner in a business partnership; have received any untaxed income over £2,500; receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000."