Self-Assessment Tax Return: What’s New in 2024/25?

Self-Assessment Tax Return: Should You Register This Year?

Requirements and Deadlines Explained

The deadline for submitting your self-assessment tax return (ITSA) for 2024/25 is 31 January 2026. But before then, it’s essential to know whether you actually need to file one at all.

The rules for Income Tax Self Assessment (ITSA) change from year to year, and shifts in your personal circumstances can mean that you now fall within the system for the first time — or that you may no longer need to complete a return. Either way, taking the right action by the deadlines is crucial to avoid penalties.

How to Register a Self-Assessment Tax Return for the First Time

If you have never registered for a self-assessment tax return before but now meet HMRC’s criteria, you should tell HMRC as soon as possible. While the standard deadline of 5 October has now passed, you should still register without delay to avoid potential penalties.

You can register by:

• Completing the process online through your Government Gateway account.
• Filling in form SA1 and posting it to HMRC.
• If you’re self-employed, you need to set up a business tax account and add self-assessment. Alternatively, you can complete form CWF1.

Self-employed individuals must also register for Class 2 National Insurance Contributions (NIC) as part of this process. Although the obligation to pay Class 2 NIC has been abolished from 2024/25, earning more than the small profits threshold of £6,725 still provides full NIC credits towards your state pension. If you earn less, you may choose to pay voluntarily through your return.

Returning to ITSA

Some people need to file a self-assessment tax return again after a break. This applies if you:

• Have filed in previous years, but not for the 2023/24 tax year.
• Did not need to file last year, but now do for the 2024/25 tax year.

In this case, you should reactivate your self-assessment account before submitting your return. HMRC has separate processes for self-employed taxpayers and those in other categories.

Leaving ITSA

In certain circumstances, you may find that you no longer meet the self-assessment criteria. If HMRC has sent you a notice to file but you believe you are no longer required to do so, you must notify HMRC.

Failing to file a return after receiving a notice can still result in penalties — even if you no longer meet the requirements.

When is a Self-Assessment Tax Return Required?

For 2024/25, HMRC requires you to file if you meet any of the following:

• Self-employment income over £1,000
• Rental income above £2,500 net or £10,000 gross
• Savings or investment income over £10,000
• Dividend income over £10,000
• Other untaxed income of £2,500+
• Employment expenses claims of more than £2,500
• Liability to the High Income Child Benefit Charge (HICBC) if not using HMRC’s PAYE service
• Capital gains exceeding £3,000, or asset disposals worth more than £50,000

The old PAYE income threshold of £150,000, which applied in the 2023/24 tax year, has now been removed. This means that many people will no longer need to file, but it is still essential to carefully review your situation.

Simple Assessments

Instead of requiring a tax return, HMRC may issue a simple assessment for some taxpayers. This is used to collect tax that cannot be dealt with under PAYE or ITSA.

If you plan to submit a return but also receive a simple assessment, you should contact HMRC to request that the assessment be withdrawn.

Don’t Get Caught Out

Whether you are joining, returning to, or leaving ITSA, the deadlines and rules can feel complex. Missing a requirement or deadline can lead to fines and unnecessary stress.

That’s why many individuals and businesses use Maynard Johns Chartered Accountants for expert advice and tax return support.

If you’re unsure about whether you need to complete a tax return for 2024/25, or how the ITSA rules apply to your situation, we’re here to help.

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