2023 2024 tax return - first time. Not adding up. Please help.

[Deleted User]

Nabla said:

Another crazy thing:

I registered for SA before the Oct 2024 deadline to complete my 23/24 tax return. 

On the home page, it is now asking me to complete a return for 2022/2023 as well, and stating that late penalties may be due. But don't understand why it is asking me to so this? Before 23/24 date I was only on PAYE, that's why I only just registered for 23/24 tax year.



Also, in the penalties, it doesn't even mention 22/23 year, and is also asking me to make payments for 24/25 tax year, before 31 January 2025. Shouldn't the deadline for 24/25 be 31 January 2026? (since deadline for 23/24 was 31 January 2025)... I don't even have an option on my home page to fill in a 24/25 tax SA return, and wouldn't expect one, since the tax year is not even over yet until April 2025. This just doesn't make sense at all.

The payment on account system has not changed  since April 1997 (27 years ago)- you really need to read sheramber’s link with reference to payments on account. Bearing mind that 2024/25 tax year commenced nine months ago - your payments are on account, not in advance. 

DRS1

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

Dazed_and_C0nfused

DRS1 said:

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

It's likely to be connected to the total taxable income.

Different rules were applied by HMRC for 2022-23 and I think it was income of £100k or more which was a reason they wanted a tax return back then.

I also agree with @[Deleted User] there is nothing to suggest any advance payments are required from the op.

DRS1

Dazed_and_C0nfused said:

DRS1 said:

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

It's likely to be connected to the total taxable income.

Different rules were applied by HMRC for 2022-23 and I think it was income of £100k or more which was a reason they wanted a tax return back then.

I also agree with @[Deleted User] there is nothing to suggest any advance payments are required from the op.

OK So we know he is over £100k for 23/4.  Maybe he was for 22/3.
But they did not ask for a return in April 23.  As I understand it the request only appears after he has registered for self assessment in Oct 24.  Surely it is a bit late then to ask for a return for 22/3 (and threaten penalties for late filing!).

Dazed_and_C0nfused

DRS1 said:

Dazed_and_C0nfused said:

DRS1 said:

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

It's likely to be connected to the total taxable income.

Different rules were applied by HMRC for 2022-23 and I think it was income of £100k or more which was a reason they wanted a tax return back then.

I also agree with @[Deleted User] there is nothing to suggest any advance payments are required from the op.

OK So we know he is over £100k for 23/4.  Maybe he was for 22/3.
But they did not ask for a return in April 23.  As I understand it the request only appears after he has registered for self assessment in Oct 24.  Surely it is a bit late then to ask for a return for 22/3 (and threaten penalties for late filing!).

I think it would probably be December 2026 before it was too late.

If you don't file late there cannot be any late filing penalties.  That is entirely in the op's hands.  There really is no reason to file late.

DRS1

Dazed_and_C0nfused said:

DRS1 said:

Dazed_and_C0nfused said:

DRS1 said:

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

It's likely to be connected to the total taxable income.

Different rules were applied by HMRC for 2022-23 and I think it was income of £100k or more which was a reason they wanted a tax return back then.

I also agree with @[Deleted User] there is nothing to suggest any advance payments are required from the op.

OK So we know he is over £100k for 23/4.  Maybe he was for 22/3.
But they did not ask for a return in April 23.  As I understand it the request only appears after he has registered for self assessment in Oct 24.  Surely it is a bit late then to ask for a return for 22/3 (and threaten penalties for late filing!).

I think it would probably be December 2026 before it was too late.

If you don't file late there cannot be any late filing penalties.  That is entirely in the op's hands.  There really is no reason to file late.

That may be some comfort though the screenshot he posted says the 22/3 return is Late already

[Deleted User]

DRS1 said:

Dazed_and_C0nfused said:

DRS1 said:

Dazed_and_C0nfused said:

DRS1 said:

I notice no-one is answering the question why he is being asked to do a self assessment return for 22/3 when that was covered by PAYE.  That seems off to me.

It's likely to be connected to the total taxable income.

Different rules were applied by HMRC for 2022-23 and I think it was income of £100k or more which was a reason they wanted a tax return back then.

I also agree with @[Deleted User] there is nothing to suggest any advance payments are required from the op.

OK So we know he is over £100k for 23/4.  Maybe he was for 22/3.
But they did not ask for a return in April 23.  As I understand it the request only appears after he has registered for self assessment in Oct 24.  Surely it is a bit late then to ask for a return for 22/3 (and threaten penalties for late filing!).

I think it would probably be December 2026 before it was too late.

If you don't file late there cannot be any late filing penalties.  That is entirely in the op's hands.  There really is no reason to file late.

That may be some comfort though the screenshot he posted says the 22/3 return is Late already

Have to agree - I suspect a notice to file may have been issued significantly after April 2023, not noticed by the op, and not completed. Guessing though!

sheramber

HMRC are the only people who know why they ask for a 22/23 return. 

We can only make suppositions since we do not know  the OP’s circumstances for that year, or what information HMRC hold for that year. 

Buy, if HMRC ask you to complete return you must do so or face possible penalties.