Understanding the 2024/25 UK tax reporting requirements

Many UK taxpayers are unaware that they might still owe taxes even without a self-assessment requirement. In our latest Insight, Consilium Personal Tax expert Anne McCulloch outlines the tax allowances, potential liabilities and the 2024/25 UK tax reporting requirements for those not required to complete the self-assessment process.

Quick links:

• What are the 2024/25 UK tax reporting requirements for Self-Assessment?
• If I don’t need to send a Self-Assessment tax return, is there no tax to pay?
• What are the Personal allowances for the 2024/25 tax year?
• How do I notify HMRC of my 2024/25 income without a Self-Assessment tax return?
• How can I obtain a tax calculation from HMRC?
• How can I report my 2024/25 Capital Gains to HMRC?

What are the 2024/25 UK tax reporting requirements for Self-Assessment?

Individuals who meet HMRC’s self-assessment criteria will be required to complete a Tax Return. Their Tax Return must be filed with HMRC by the due date to avoid late filing penalties, with any tax liability also paid by the due date to avoid late payment interest and penalties.

If an individual is required to complete a tax return for the 2024/25 tax year they must file their return online no later than 31 January 2026 (31 October 2025 if filing on paper) with any tax owed also paid by this date (subject to making payments on account if required by their due dates).

Handily, HMRC has an online tool where individuals can check their requirement to complete a tax return by answering a series of questions.

If I don’t need to send a Self-Assessment tax return, is there no tax to pay?

After working through the questions, an individual may receive a response of “You do not need to send a Self-Assessment tax return”. They may then assume that they will have no tax liability or any tax reporting requirements, but do they?

The devil, as always, is in the details, as there is a caveat noted that individuals must consider.

Yes, it may be that they do not need to file a Tax Return with HMRC, but they may still have taxable income that they need to report to HMRC, which will result in them having a tax liability.

What are the Personal allowances for the 2024/25 tax year?

For the 2024/25 Tax Year, individuals have the following allowances*:

Personal savings allowance:      

• Basic rate taxpayers: £1,000
• Higher rate taxpayers: £500
• Additional rate taxpayers: £Nil

Dividend Allowance: £500

Standard Personal Allowance:  £12,570 (subject to tapering)

Capital Gains Tax Allowance: £3,000.

To properly illustrate some of the scenarios where a tax liability might exist even without the need to complete self-assessment, here are three examples.

Do I have a tax liability for 2024/25? Example 1

An individual has the following income sources for the 2024/25 tax year:

• Gross salary: £70,000
• Gross bank interest received: £3,000
• Dividends received: £2,500

Do they need to complete a Tax Return? No.

Are they required to advise HMRC of their income sources?  Yes

Will they have a tax liability? Yes

The individual is a higher-rate taxpayer. As such, the bank interest received over their Personal Savings Allowance of £500, i.e. £2,500, will be subject to income tax. In addition, as their dividend income exceeds the dividend allowance of £500, the amount over this allowance, i.e. £2,000, will also be subject to income tax.

The question is then how the individual reports this income to HMRC.

How do I notify HMRC of my 2024/25 income without a Self-Assessment tax return?

Banks now notify HMRC of annual interest received by individuals; therefore, individuals with only bank interest to report should find that HMRC will automatically issue them with a tax calculation after the end of the tax year. It can, however, take some time for HMRC to issue the tax calculation.

At Consilium, we recommend that individuals receiving a tax calculation check that HMRC’s figure agrees with their bank records. In the past, HMRC has used the wrong individual’s details, in particular when family members have the same or similar names.

If an individual would prefer to notify HMRC of their bank interest received or have other reportable income, such as dividend income, they can contact HMRC by phoning them (beware however, of the wait times to get through), writing to them or updating their income sources through their Personal Tax Account. As HMRC continues to move towards all aspects of tax reporting becoming digital, Consilium also recommends that individuals set up a Personal Tax Account via the Government Gateway.

How do I obtain a tax calculation from HMRC?

Once HMRC have updated an individual’s tax record, they will issue a tax calculation showing the tax liability due.  If possible, HMRC may collect the tax liability by adjusting an individual’s tax code; otherwise, the individual would be required to pay the tax liability.

For individuals with a PAYE source, such as salary or private pension income, rather than waiting until the end of the tax year, an adjustment can normally be made through their tax code for their other income. This essentially collects an estimate for the tax due each month rather than having the full tax liability to pay on their other income sources after the end of the tax year.

With the increase in bank interest rates over the last year or so, many individuals may now find that their bank interest received exceeds their Personal Savings Allowance.

Do I have a tax liability for 2024/25? Example 2

An individual has disposed of shares during the 2024/25 tax year. Sales proceeds are £20,000, and they have made a capital gain of £10,000.

Do they need to complete a Tax Return? No.

Are they required to advise HMRC of their income sources? Yes.

Will they have a tax liability? Yes.

As their capital gain exceeds the capital gains tax annual allowance of £3,000, the balance over this allowance, i.e. £7,000, will be subject to capital gains tax. (assuming no loss or other reliefs available).

How do I report my 2024/25 Capital Gains to HMRC?

The capital gain in this instance can be reported online using HMRC’s Real Time Capital Gains Tax Service. The “real-time” Capital Gains Tax Service can, however, only be used if an individual is a UK Resident. The service can also not be used to report:

• Capital gains on UK Residential property (separate rules for CGT 60-day reporting will apply)
• Foreign tax credit relief for overseas property
• Chargeable event gains for life assurance.

Do I have a tax liability for 2024/25? Example 3

An individual with only the following income source for the 2024/25 tax year and entitled to a standard personal allowance:

• State Pension: £13,000

The individual will be a basic-rate taxpayer.

Do they need to complete a Tax Return? No.

Are they required to advise HMRC of their income sources? No.

Will they have a tax liability? Yes.

A question that is often asked is whether the state pension is taxable. The answer is yes; it forms part of an individual’s gross taxable income. However, it is always paid gross as tax cannot be deducted at source from it.

In this scenario, no action would be required by the individual as HMRC will issue them a tax calculation after the end of the tax year. This will show the tax due on the state pension over the standard personal allowance.

The tax liability is a result of the personal allowance being frozen at £12,570 since 2021/22. However, any pensioners falling into this category will no doubt be surprised to receive a tax demand from HMRC.

Personal tax services that make tax much less taxing

With changes to the requirements to complete a tax return and changes in tax allowances, individuals must review their tax position at the end of each tax year to ensure that they meet their tax reporting requirements. As demonstrated above, this can be more complex than we might expect.

The Personal Tax team at Consilium Chartered Accountants help individual taxpayers navigate the intricate UK tax landscape. For a confidential chat about your Personal Tax requirements, please get in touch with Anne McCulloch.   

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*Separate income tax rates apply in Scotland to wages, pensions and most other taxable income. Income tax on savings interest and dividends is, however, charged at the same rates as the rest of the UK.