Try our comprehensive tax return calculator to estimate your tax liability for the 2023/2024 tax year. Our easy-to-use calculator will help you plan your finances before the upcoming Self Assessment deadlines.
As we approach the culmination of the 2024 tax return season, understanding your Self Assessment obligations has never been more crucial. Whether you're self-employed, a high earner, or receive income from multiple sources, the calculator and this quick guide will walk you through all the key points you need to know about filing your tax return for income from the 2023/24 tax year.
Self-employed individuals earning over £1,000 and employees with annual income exceeding £100,000 must submit a Self Assessment tax return. The requirement also extends to landlords with rental income above £2,500, those with investment income over £10,000, and individuals claiming Child Benefit where either partner earns more than £50,000 - due to the Child Benefit Charge that thankfully will be changing to increase the earning limit and then abolished completely in 2026.
Company directors, trustees, and ministers of religion are also required to file returns, regardless of their income level. Additionally, if you have foreign income that needs to be taxed or capital gains to declare, you'll need to complete the Self Assessment.
Time is of the essence when it comes to tax returns. The registration deadline for those new to Self Assessment was 5 October 2024. If you preferred to file a paper return, 31st October 2024 was the date for your calendar. For online submissions, you have until 31st January 2025, which is also when your tax payment for 2023/24 and first payment on account for 2024/25 are due.
For the 2023/24 tax year, the tax-free Personal Allowance remained at £12,570. Income between £12,571 and £50,270 is taxed at the basic rate of 20%, while earnings from £50,271 to £125,140 fall into the higher rate band at 40%. Any income above £125,140 is taxed at the additional rate of 45%. These bands are different for Scotland, which you can trigger by using the tax region selector in our tools. We've published the full tax rates and allowances for 2023-2024 for your reference.
Late submission can be costly. An immediate £100 penalty applies for returns up to three months late, with additional daily charges of £10 after this period. The penalties can escalate significantly, potentially reaching thousands of pounds for returns that are twelve months late. Late payment interest charges also apply, with a new penalty system in place. While no penalty is charged for payments made within 15 days of the due date, delays beyond this period incur graduated penalties starting at 2% and increasing to 4% after 30 days.
Maintaining accurate records is essential for at least five years after submission. While HMRC provides comprehensive online resources, many taxpayers find value in seeking professional advice, especially when dealing with complex income sources or claiming specific reliefs. So, remember to use our tax calculator or the tool above to get a clear picture of your potential tax liability. This will help you budget accordingly and ensure you're prepared for your tax obligations!.