HMRC Tax Return Registration Deadline Approaching Fast!
The 5th October HMRC tax return registration deadline is almost here - find out how to file your tax return for the year ended 5th April 2021.
Louise Lane BA (Hons), FCA, CTA
Tue Sep 21 2021
If you don’t already file a Tax Return, you need to notify HMRC by 5 October 2021 if you have income or capital gains to report for the tax year ended 5 April 2021.
How to notify HMRC
Your accountant can register on your behalf, or you can do it yourself online or by calling HMRC.
HMRC will issue you with a "Notice to File a Tax Return" and you should chase this if it is not received.
Your tax return will need to be filed online with HMRC by 31 January 2022 and the tax is payable to HMRC by the same date.
Many will be filing capital gains for the first time this year
We are seeing a lot of individuals who are involved in crypto activities that need to file a tax return for the year ended 5 April 2021 for the first time. Most buying/selling/exchanging of crypto tokens is taxed under the capital gains tax regime; please seek professional tax advice if you are not sure how your crypto activity is taxed or take a look at Recap's UK Crypto Tax Guide.
If your capital gains exceed £12,300 for the tax year ended 5 April 2021, you need to register with HMRC by 5 October 2021 and file a tax return by 31 January 2022. It is strongly recommended that you calculate your capital gains for the tax year ended 5 April 2021 as soon as possible, to check if you need to register to file a tax return.
There is also a rise in investors with income from crypto
An increasing number of crypto investors are also generating income from staking, mining etc; which is taxable as Miscellaneous Income. Where total investment income from all sources (ie crypto, dividends, interest or trusts) exceeds £10,000 in the tax year ended 5 April 2021, you are required to register with HMRC and file a tax return.
If the investment income is between £1,000 and £10,000, you need to call HMRC to notify them, but may not need to file a tax return (if this investment income is the only reason a tax return is needed).
Find out your tax position with ease
You can check your crypto capital gains and income position free of charge using Recap.