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Following some strong financial results at my company, my salary — including bonuses — is a little over £150,000 for the first time. I don’t have any other income and my tax is deducted automatically through PAYE. It was my understanding that I need to complete a self-assessment tax return now that my earnings have increased, and that the deadline for submitting the return is different from that which applies to non-PAYE taxpayers. Am I right in thinking the rules have recently changed? What tax return — if any — do I need to submit this year?
Richard Jameson, private wealth partner at Saffery, says that for the tax year 2022-23, anyone with taxable income above £100,000 needs to file a tax return. They needed to notify HM Revenue & Customs of the requirement to file by October 5, following the end of the tax year on April 5.
If you were obliged to complete a self-assessment return for the 2022-23 tax year and did not notify HMRC by October 5, you should do so as soon as you can. Penalties for late registration can be up to 100 per cent of the tax owed. However, if you still file your return and pay any tax due on time (by January 31 2024) you should not be penalised by HMRC.
The reporting threshold was raised for 2023-24 to £150,000. So by October 5 2024 you will need to notify HMRC of the need to file a return.
The deadline for submitting a tax return on paper is October 31 following the tax year end and it is January 31 if filing online. This means the deadline for filing the 2023-24 tax return online is January 31 2025 (and for paying any tax due).
However, for taxpayers who are liable to pay tax through the PAYE system, and have additional tax to pay of less than £3,000, provided they file their 2023-24 return — by paper by October 31 online before December 30 2024 — HMRC will collect any additional tax through PAYE, unless the taxpayer specifically notifies HMRC not to do this on their tax return.
There are a few exclusions to this automatic collection process (including if you do not have enough PAYE income, or more than 50 per cent of your income would be paid in tax, or you’d pay twice as much tax as you would normally). The tax is deducted in 12 equal instalments.
If you do not file your return by December 30 but would still like to pay any tax owed in instalments rather than as a lump sum, you may be able to set up a payment plan with HMRC with regular weekly or monthly payments. This will only be possible if you meet several criteria, including that you owe less than £30,000 in tax, and the payment plan can only be arranged within 60 days of the payment deadline on January 31. Interest will run on the instalments.
At the recent Autumn Statement, the chancellor announced that the income threshold for filing a return will be removed from April 6 2024 — this will apply to tax paid in the 2024-25 year. So individuals who are income taxed only through PAYE and have nothing else to report will not be required to file a self-assessment tax return for 2024-25 onwards.
While this simplification is laudable, if you have other income, such as bank interest, you will still be required to complete a tax return. Income within Isas and other non-taxable income can be ignored.
How can I retrieve my crypto cash?
I put a significant amount of money into cryptocurrencies through what I thought was a trusted platform. After months of trying, I have got no closer to withdrawing my investment. I need the cash for a property purchase. I can’t work out what options are open to me. Could I bring proceedings against someone?
Sobashni De Silva, partner at JMW Solicitors in London, says the expected timeframe for the withdrawal of funds will be subject to the terms and conditions of your investments, so ordinarily you should not have any difficulty withdrawing your investment when you need it. But sometimes getting your money released from a digital platform may not be straightforward.
Cryptocurrency refers to a digital form of currency traded and stored on a blockchain. The blockchain serves as a decentralised ledger distributed across multiple locations, lacking a singular identifiable point. As a result, cryptocurrency essentially exists both everywhere and nowhere simultaneously.
The difficulties you are experiencing could be due to withdrawal limits, verification processes or your wallet status. Given the delay, you need to speak to your account manager and get answers from the platform immediately.
It is always prudent to communicate in writing when there are purported issues with withdrawal. Escalate this quickly and if the situation becomes more complicated and you believe that you are facing unfair treatment or potential fraud, you should consider seeking legal advice.
The English legal system has made significant advances in addressing the challenges presented by crypto fraud. Victims of fraud can promptly pursue remedies through the English courts, subject to jurisdictional challenges. The law surrounding cryptocurrency claims are constantly evolving. Some of the legal remedies available are proprietary injunctions, worldwide freezing orders, Bankers Trust orders and third-party debt orders.
Our next question
My partner recently died and left everything in his will to his wife, from whom he had been separated for many years, but had not divorced. He had not updated his will. We lived together for more than 10 years. Can I challenge his will?
Whom you should sue is a grey area in cryptocurrency lawsuits. When you come across a situation where you cannot withdraw your investment, typically the people you have been in communication with you stop all contact. You are then left with individuals who have possibly used pseudonyms with no real identity to locate them. In most cases you will still be able to conduct a detailed investigation and issue proceedings. Also, it is very common in crypto litigation to sue “persons unknown”.
As the complexities of blockchain technology persist, English courts are expected to navigate these intricacies and employ adaptable legal measures to address emerging issues.
If you decide to invest in cryptocurrencies in the future — once your current issue has been resolved — remember to follow best practices on security. The recent speculation that the US Securities and Exchange Commission is likely to approve the first spot bitcoin exchange traded fund application is reassuring. If this happens, it will offer more protection to investors and allow them to invest in bitcoin as if it were a conventional stock.
The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect result arising from any reliance placed on replies, including any loss, and exclude liability to the full extent.
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