Urgent HMRC warning as thousands 'legally required' to report earnings with deadline imminent

Millions of Brits could be required to file a self-assessment tax return for the 2023/24 tax year - with the deadline to register just hours away

Time is ticking for those needing to sign up for self-assessment with HMRC, as the deadline looms. You've got until 11:59pm on Saturday, October 5 to register if you're going to be paying self-assessment taxes for the first time in the 2023/24 tax year.

There's a variety of reasons why you might need to register for self-assessment. If you're self-employed and pulling in over £1,000, whether that's from your own venture or alongside a regular PAYE job, it's time to sign up.

With more Brits embarking on side hustles, it's crucial to keep tabs on your earnings. For those selling goods online via platforms like Etsy, Vinted, or eBay, it's important to check your income. These sites are legally required to report earnings, so if your sales exceed £1,000, HMRC needs to know, reports the Mirror.

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Other circumstances that necessitate registering include earning upwards of £2,500 from property rental or other "untaxed income", receiving a P800 from HMRC indicating underpayment of tax, needing to demonstrate self-employment status for benefits like Tax-Free Childcare, or opting to make voluntary Class 2 National Insurance contributions to qualify for certain benefits.

Once you've registered, you have until January 31 to submit your return and pay the taxes you owe. If you're filing a paper return, you only have until October 31 to submit it, then you have until January 31 to pay.

Failure to do so could result in a £100 fine from HMRC. Further charges could be incurred if you fail to submit within three months of the deadline, or if you pay your tax bill late, plus interest.

Here's how to register for self-assessment for the first time:

To register for self-assessment, you'll need to set up an "organisation account" - or a "business tax account - for HMRC's online services. You can set this up using your government gateway login. It's important to remember that this is different from your personal tax account. Once the business account is set up, then you can register for self-assessment by selecting " - for HMRC's online services. This can be done using your government gateway login.

Remember, this is different from your personal tax account. Once the business account is set up, you can register for self-assessment by selecting "add a tax to your account to get online access to a tax, duty or scheme."

You also have the option to register via a paper form. Simply download the document from the Government's website, print it out and post it to HMRC.

However, choosing this method means you will miss this year's deadline.

After registration, HMRC should provide you with your Unique Taxpayer Reference (UTR) number within 10 to 15 working days. This 10 digit number is required for all communications with HMRC.

Additionally, the tax office will issue a formal notice for filing a tax return for the 2023/24 tax year. You can select through your online tax account whether you wish to receive this digitally or by post.

From that point onwards, all you need to do is file/pay your tax returns by the appropriate deadline.