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Advising HMRC about changes in your income | What changes do I need to report?

Advising HMRC about changes in your income | What changes do You need to report?

Mike Wakeford

 Why Might You Need to Contact HMRC About Changes to Your Income?

There are a number of reasons why you might need to contact HMRC ‚Äč about changes in your income

HMRC’s guidance states that this could happen because you:
•    did not realise you needed to tell HMRC about it;
•    were not sure how to declare it; or
•    did not declare it because you could not pay the tax.

Examples where you may need to contact HMRC are if you are self-employed, a company director, have annual income over £100,000 and / or have undeclared income from savings, investment, property or overseas income. The £100,000 threshold for the Self-Assessment threshold for taxpayers taxed through PAYE only, has increased from £100,000 to £150,000 with effect from 6 April 2023. However, the Self-Assessment for 2022-23 tax returns remains at £100,000.  

When Do You Need To Tell HMRC About The Changes To Your Income?
Taxpayers that need to complete  a Self-Assessment return for the first time should inform HMRC as soon as possible. The latest date that HMRC should be notified is by 5 October following the end of the tax year for which a Self-Assessment return needs to be filed. If you are required to submit a  Self-Assessment return for 2022-23, you should ensure that you file your tax return electronically and pay any tax due by 31 January 2024.

HMRC has an online tool  www.gov.uk/check-if-you-need-tax-return/ that can help you check if you are required to submit a Self-Assessment return.
 
Reasons Why You May Not Need to Inform HMRC About Changes to Your Income:

There are two small exemptions from tax that may apply:

  • If you make up to £1,000 from self-employment, casual services (such as babysitting or gardening) or hiring personal equipment (such as power tools). This is known as the trading allowance.
  • If your annual gross property income is £1,000 or less, from one or more property businesses you will not have to tell HMRC or declare this income on a tax return. For example, from renting a driveway. This is known as the property allowance.

Where each respective allowance covers all the relevant income (before expenses) the income is tax-free and does not have to be declared.

If you have undeclared income, it is always preferable to contact HMRC as soon as possible. We would be happy to assist.

Contact our Specialist Tax Team

If you need help completing a self assessment Contact our specialist tax team to help you complete it accurately and submit it on time to HMRC.