Not notified of your income or gains? What to do if you are a taxpayer who has never been in Self Assessment and you realise in late January that you need to file a tax return? What should you do?
Notification of chargeability
An individual who has not received a Notification to file a Self Assessment return must generally inform HMRC that they are chargeable to Income Tax or Capital Gains Tax (CGT) by 5 October following the end of the tax year.
- For example, if someone started to receive trading income in 2023-24, they had until 5 October 2024 to notify HMRC.
Following notification of chargeability, HMRC will issue a notice to file a tax return. This return must be submitted by the later of:
- 31 January following the end of the tax year.
- Three months from the date of notice to file.
Late notification penalties
Where the 5 October Notification deadline is missed, HMRC can charge penalties for failure to notify. These penalties are based on the behaviour of the taxpayer and the 'potential lost revenue'.
The 'potential lost revenue' is the amount of Income Tax, Class 4 National Insurance and CGT unpaid by 31 January following the end of the tax year, which results from the failure to notify.
The Penalties for late notification which may be charged can be summarised as:
Behaviour | Maximum penalty | Minimum penalty (unprompted disclosure) | Minimum penalty (prompted disclosure) | ||
Deliberate and concealed | 100% | 30% | 50% | ||
Deliberate but not concealed | 70% | 20% | 35% | ||
Not deliberate | 30% | <12 months: 0% | >12 months: 10% | <12 months: 10% | >12 months: 20% |
A penalty is not due if the taxpayer has a Reasonable excuse for the failure to notify, the failure is not Deliberate and they tell HMRC without unreasonable delay after their reasonable excuse has ended.
A taxpayer realises in late January that they need to file a tax return but have not told HMRC. What should they do?
Where the 5 October notification deadline is missed and a taxpayer subsequently realises they are Chargeable to Income Tax or CGT, they should:
- Register for self-assessment online as soon as possible.
- Calculate their tax liability and make payment of the tax due by 31 January.
- If they do not have a Unique Taxpayer Reference (UTR), payment can be made using their National Insurance number.
- Ensuring tax is paid by 31 January means there is no 'potential lost revenue' unpaid by 31 January on which failure to notify penalties can be charged. In addition, no late payment interest should arise.
- Submit their tax return as soon as practicable.
- The submission deadline will be the later of 31 January following the end of the tax year and 3 months from the date of HMRC's notice to file.
- If the tax return is submitted late, Late filing penalties may be charged.
Useful guides on this topic
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?
Penalties: Failure to Notify
What tax penalties apply if you fail to notify HMRC that you are chargeable to tax? Can they be appealed or reduced?
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).
Failure to notify chargeability to tax
What is failure to notify chargeability to tax? What happens if you fail to notify HMRC about your taxes? What penalties apply for failing to notify HMRC that you have a tax liability?
Penalties: Late Payment
What penalties are charged when tax is paid late?
Penalties: Late Filing
Late returns can be subject to a mix of fixed and tax geared penalties. What penalties apply for late filing? Which penalty will apply and when?
Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?
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.
Notice to file a tax return: section 8(1) TMA 1970
A guide to explain the implications of a notice sent to an individual under s.8(1) TMA 1970 to file a tax return.