Freelancers and gig-workers urged to register for deadline to avoid HMRC penalties  – London Business News | Londonlovesbusiness.com

Those yet to register for self-assessment have just days left to do so – including those with side hustles and people who have recently started to work in a self-employed capacity.

People who have earned income from self-employment in the 2023/24 tax year (6^th April 2023 – 5^th April 2024) must register for self-assessment by HMRC’s deadline of 5^th October.

Failure to could result in penalties and fines, says Qdos, a tax insurance specialist for the self-employed.

With just days until the deadline, Qdos is urging those who are yet to register to do so. Those required to complete the self-assessment for the first time must inform HMRC that they have earned income via self-employment. This includes those who:

• are newly self-employed and have earned gross income over £1,000
• earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
• are a new partner in a business partnership
• have received any untaxed income over £2,500
• receive Child Benefit payents and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

HMRC may issue fines for late registration, and missing this deadline might also cause delays down the line when paying your self-assessment tax bill (due by midnight on 31^st January 2025). Late payments will also result in penalties, with interest charged on top of any outstanding taxes due to HMRC.

Qdos CEO, Seb Maley, said, “HMRC issued an advisory a few months ago to alert people about the upcoming deadline. Not everyone will have been aware of it, though, and the deadline has continued creeping on up – now it’s imminent.

“It’s crucial that those who fit the bill as a self-employed worker – in whatever capacity – register for self-assessment by the 5^th October deadline. Doing so means you’ll be well-placed to get a head start on the actual payment of your tax bill, well ahead of 31^st January.

“As is the case with any tax deadline, missing the registration can easily land you with a penalty. It’s important to start off with your best foot forward. Getting things sorted as early as possible can help remove the stress from managing your tax affairs – and that’s especially true if you’re new to this way of working.”