Our 2024 guide to nailing your tax return

Telegraph Money explains how to navigate HMRC’s requirements and avoid penalties and beat the deadlines. By Danielle Richardson

The next self- assessment tax return deadline is on Jan 31. By then, you need to submit your financial information relating to the 2022-23 tax year.

According to its latest count, HM Revenue and Customs is still waiting for 5.7m people to file – so if you’re yet to make a start, you’re not alone – but you should get going soon to make sure you avoid any late penalties.

Thousands of people have used the festive holidays to submit their figures, with 4,757 people filing on Christmas Day, and 25,593 filing on New Year’s Eve; 127 people saw in 2024 by filing their tax return between midnight and 1am on New Year’s Day.

Thanks to years of frozen tax thresholds and slashed tax-free allowances, increasing numbers of people are finding themselves having to file a tax return – to pay the “high income child benefit charge”, for example.

While most people find the process straightforward, if you have multiple income sources or complicated tax affairs, then it can be a headache.

There are also big changes for investors, with cuts to capital gains and dividend allowances, and freelancers.

Frozen tax thresholds, high savings rates and higher earnings are likely to mean an increasing number of people might need to start filing a tax return.

Seeing as HMRC has struggled to keep up with demand, in an attempt to reduce the number of filers, the Chancellor announced in his Autumn Statement that as of April 2024 there will no longer be an upper income threshold that requires you to file a tax return. At the moment, you must file if your income exceeds £150,000.

For 2022- 23 tax returns, you may need to file for many other reasons. This might be the case if between April 6 2022 and April 5 2023 you were employed as a sole trader and earned more than £ 1,000 in taxable profits; received taxable income of more than £100,000; had to pay the high income child benefit charge; received money from renting out a property; received foreign income; made money through tips or commission; received income from savings interest; received dividends income; made a taxable gain from selling a second property, shares or valuable items. If you’re still not sure whether you need to file a tax return, you can use the online tool at gov.uk.