One to Many Campaign

HMRC's latest campaign targets individuals earning over ￡200,000 annually who haven't filed a self-assessment tax return for the 2021/22 tax year. Filing is required for those earning over ￡150,000, self-employed, partners in a business, liable for Capital Gains Tax, affected by the High Income Child Benefit Charge, or receiving untaxed income. Sophie Dodridge ,Personal Tax Assistant Manager explains....

HMRC has recently launched another One to Many campaign, this time aimed at individuals who earn over ￡200,000 annually and haven’t submitted a self-assessment tax return for the 2021/22 tax year.

Who Needs to File a Self-Assessment Tax Return?

While the campaign specifically targets those earning over ￡200,000, it’s crucial to understand the broader criteria that require individuals to file a self-assessment. You must submit a return if any of the following apply:

1. Your total income for the year exceeds ￡150,000 Even if you are taxed at source through PAYE, income over this threshold triggers a filing requirement
2. You earn more than ￡1,000 from self-employment This includes freelancers, contractors, and anyone earning additional income outside their primary employment
3. You are a partner in a business partnership Business partners must declare their share of the partnership’s taxable profit/loss
4. You dispose of shares, property, or other assets that incur Capital Gains Tax This includes any asset sales where Capital Gains Tax is due, or the proceeds exceed ￡50,000 (this can also include gifted assets)
5. The High Income Child Benefit Charge applies to you This is relevant if your income exceeds ￡50,000 and you or your partner receives Child Benefit
6. You receive untaxed income, such as: ? Rental income from properties ? Dividends or interest from savings ? Income from foreign investments

The deadline for submitting self-assessment tax returns for the 2021/22 tax year was 31 January 2023.

What Should You Do?

If you meet any of the criteria above and have not filed a return, it’s essential to act promptly:

• Check if you need to file a return: by going to GOV.UK and searching ‘Check if you need to complete a tax return’
• File your returns now: be aware of the penalties for late filing and late payment including statutory interest. Go to GOV.UK and search ’estimate your penalty for late Self-Assessment returns and payments’
• Seek professional advice: If you’re unsure about your filing obligations or need assistance navigating complex tax scenarios, consider consulting with a tax professional

If you would like further information on how this campaign may affect you, please contact your usual Shaw Gibbs contact or Sophie Dodridge who will be glad to help.