Tag: myths debunked

Need to register for Self Assessment? Top 5 myths – debunked

Anyone who needs to complete a Self Assessment tax return for the first time to cover the 2023 to 2024 tax year, should tell HM Revenue and Customs (HMRC) by 5 October 2024.

There’s plenty of myths about who needs to file a Self Assessment return before the 31 January 2025 deadline and HMRC today debunks some of the most common ones:

Myth 1: “HMRC hasn’t been in touch, so I don’t need to file a tax return.”

Reality: It’s the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for Self Assessment and file a return, including if they:

  • 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 payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

More information can be found on GOV.UK and anyone who is unsure if they need to file Self Assessment can use the free online tool on GOV.UK to check. Once registered for Self Assessment, they will receive their Unique Taxpayer Reference, which they will need when completing their return and paying any tax that may be due. Customers will have to reactivate their account if they have registered for Self Assessment previously but did not send a tax return last year.

Myth 2: “I have to pay the tax at the same time as filing my return.”

Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is 31 January 2025. Customers may also be able to set up a Budget Payment Plan to help spread the cost of their next Self Assessment tax bill, by making weekly or monthly direct debit payments towards it in advance.

Myth 3: “I don’t owe any tax, so I don’t need to file a return.”

Reality: Even if a customer doesn’t owe tax, they may still need to file a Self Assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the State Pension.

Myth 4: “HMRC will take me out of Self Assessment if I no longer need to file a return.”

Reality:  It is important customers tell us they’ve either stopped being self-employed or they don’t need to fill in a return, particularly if they have received a notice to file. If they don’t, HMRC will keep writing to them to remind them to file their return and we may charge a penalty.

Customers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return. If customers think they no longer need to complete a tax return for the 2023 to 2024 tax year, they should tell HMRC online as soon as their circumstances change. Customers can watch HMRC’s YouTube videos on stopping Self Assessment to guide them through the process.

Myth 5: “HMRC has launched a crackdown on people selling their possessions online and now I’ll have to file a Self Assessment return and pay tax on the items I sold after clearing out the attic.”

Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a Self Assessment and pay Income Tax on the sales. HMRC’s guidance on selling online and paying taxes can be found on GOV.UK.  

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to make sure you are clear about your tax responsibilities.

“These myth busters and our range of resources on GOV.UK can help if you are unsure if Self Assessment applies to you or think you no longer need to file a tax return. Just search ‘Self Assessment’ on GOV.UK to find out more.”

HMRC has a wide range of resources to help customers register for Self Assessment, including video tutorials on YouTube and help and support guidance on GOV.UK. 

HMRC urges customers to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing.

Customers need to keep records to fill in their tax return correctly and they may be asked for documents if HMRC checks their return. Penalties may be issued if records are not accurate, complete and readable. Self-employed workers must also keep records for their business income, outgoings and make sure they’re registered with HMRC as self-employed. More information can be found on GOV.UK.

People should be cautious of potential scams and never share their HMRC login information with anyone, even a tax agent if they have one. HMRC’s scam advice can be found on GOV.UK.

Good luck, bad luck, a witch’s pet – black cat myths debunked this Halloween

We’re a nation of cat lovers with an estimated 11 million living as pets in the UK*. However, sometimes certain characteristics mean pets can be a little overlooked and sadly, black cats are one of them.

Not only do rehoming charities often have black cats waiting longer to find homes than other cats, but in a world dominated by social media, black cats are also often said to be ‘less photogenic’ than other more ‘colourful’ cats.  

PDSA vets together with PDSA Pet Insurance have debunked some of the most common myths about black cats.

“Good luck, bad luck, a witch’s pet… there’s a lot of myths around our mysterious feline friends and we’ll admit that not all of them are great,” explains PDSA Vet Lynne James.

“We, however, think black cats are wonderful and there’s loads of reasons they can make brilliant pets.”

Lynne has debunked some of the biggest myths surrounding black cats:

  1. We don’t live in the middle ages.

“It’s thought that the black cats and witches myth started sometime in the middle ages. We’re talking a thousand years ago here. They’ve gotten a whole negative reputation based on myth, when really they’re no different to any other cat.

  1. Black cats are actually good luck!

“Sailors used to take black cats aboard ships not only to catch mice but also because they believed they brought them good luck. In Scotland, a black cat turning up at your door is a sign of prosperity!

  1. They *might* live longer.

“According to researchers at the National Institute of Health, the gene that causes their fur to be black could also protect them against certain diseases. So your black cat may be scientifically less likely to fall ill with certain diseases.

  1. Black cats can help your love life.

“Believe it or not, in some parts of the world black cats are considered ‘matchmakers’ and are thought to help their owners find true love! They’re even believed to be the perfect wedding gift in some areas of the UK as they are thought to bring luck and happiness to the bride.

  1. They were worshipped.

“In Ancient Egypt, all cats were worshipped – including black cats. All cats were seen as sacred. In fact, the Egyptian goddess Bastet (who protected the home from evil spirits and disease) is often portrayed as having the body of a woman and the head of a black cat. Bastet is still worshipped today and her protection is believed by some to be cast over modern cats.”

PDSA is the UK’s largest vet charity providing a vital service for pets across the UK whose owners struggle to afford treatment costs for their sick and injured pets. For many vulnerable pets, PDSA is there to help when there is nowhere else for their owners to turn.

The charity’s insurance arm, PDSA Pet Insurance, offers a range of policies to cover cats and dogs for accidents and illness, as well as providing access to a 24/7 veterinary helpline. Every policy sold raises funds for the charity’s life-saving veterinary work.

To find out more visit pdsa.org.uk/pdsa-petinsurance

*According to the PDSA Animal Wellbeing (PAW) Report 2023.