HMRC's Wealthy Team are sending a one-to-many letter to individuals with annual earnings over £200,000 who have a dormant account with HMRC, received a Notice to File a tax return for 2021-22 but did not file, and those who have never registered for Self Assessment.
As usual, there are different versions of the letter for each category. Individuals with dormant accounts will have made returns historically but have now overlooked a renewed need to file under Self Assessment.
The Requirement to notify HMRC of chargeability to tax changed after 2022-23. For earlier years, an individual with employment income over £100,00 had to register. From 2023-24, the threshold for notification changed to £150,000. HMRC send an exit letter to those individuals where none of the other self-assessment criteria are met so no return is required until the person's circumstances change. Other types of income can trigger a need to register including property income above the Rent-a-room limit and income from self-employment that exceeds the £1,000 trading allowance.
The focus of all the letters is 2021-22. Penalties will apply as the submission deadline has long since passed.
If an individual believes they do not need to complete a return they are provided with a telephone number and an email address so they can respond by one of these means. As ever, it is important not to ignore the correspondence.
Useful guides on this topic
Penalties: SA late filing, payment, notification & error
Self Assessment (SA) tax penalties: what penalties are due for outstanding tax returns? What penalties are due for late payment? Are there special rules for delays affecting victims of the Post Office Horizon scandal and due to Covid-19?
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your own Unique Tax Reference code (UTR).
Do I have to file a tax return?
When does an individual need to file a tax return? In what circumstances do HMRC need to be notified that a tax return is required?
Self Assessment Return 2023/24: What's new?
2024 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2024.
A sole trader? Start here ...
This freeview ‘At a glance’ guide is essential reading for anyone who is thinking of starting in business on their own, as a sole trader.
Rent-a-room Relief
What is rent-a-room relief? When does it apply? What are the limits and restrictions?
External link
HMRC's One to Many letters for non-submission of tax returns
