The letters and emails sent by HMRC explain that the individual should complete a tax return for 2023/24 if they had self employment income for the year of £1,000 or more. HMRC’s online tool can be used to check if a tax return is required.

If a return is required for 2023/24, HMRC says that the individual should take the following action: 

• register for self assessment. The deadline for registering for self assessment for 2023/24 was 5 October 2024. Although this has passed, the person should still register in order to get a unique tax reference (UTR);
• submit their tax return for 2023/24. The person will need their UTR to do this. The notice to file received from HMRC will give the deadline for submitting the return; and
• pay any tax due for 2023/24 by 31 January 2025. The person can make a payment as soon as they have their UTR. They do not need to wait until they have submitted their tax return. HMRC’s guidance explains how to make a payment. Interest will be charged on any tax not paid by 31 January 2025. 

The person may need to make a voluntary disclosure to HMRC if income for earlier years has not been declared.  

HMRC says that it may carry out checks if the person does not register for self assessment and submit a tax return. If HMRC finds that a tax return should have been submitted, this could affect whether a penalty is charged, and how it is calculated. This is explained further in HMRC’s guidance.  

ICAEW’s view 

Richard Jones, Senior Technical Manager in ICAEW’s Tax Faculty, said: “As HMRC’s letter makes clear, it is important that anyone who needs to submit a tax return for 2023/24 does so by 31 January 2025 to avoid late filing penalties. However, the letter may prompt the recipient to take action which is unnecessary or incorrect. For example, the letter doesn’t encourage the recipient to check whether they ought to be registered as an employee based on their employment status. Also, it doesn’t allow for the fact that no tax may be due because, for example, the individual’s income for the tax year does not exceed their personal allowance. Recipients should therefore seek professional advice where they are unsure what action to take.” 

Further information 

• Template letter
• Template email 
• ICAEW guidance Has HMRC sent your client a letter?