HMRC Reporting
Understanding your tax reporting obligations
Why HMRC Reporting Matters
When you invest outside of ISAs and pensions, you may need to report your investment income and gains to HMRC through Self Assessment. Understanding your reporting obligations helps you stay compliant, avoid penalties, and claim all the tax reliefs you're entitled to.
Proper record-keeping and timely reporting give you peace of mind and help you optimize your tax position legally. Missing deadlines can result in penalties and interest charges.
What You Need to Report
You Must Report If:
- Your total income exceeds £100,000
- Capital gains exceed the annual allowance (£6,000 for 2023/24)
- Dividend income exceeds £10,000
- You're self-employed or a company director
- You have foreign income or gains
What to Report:
- Dividend income above the £1,000 allowance
- Interest income above the Personal Savings Allowance
- Capital gains above the annual allowance
- Foreign income and gains
- Rental income from property investments
Key Deadlines:
- Register for Self Assessment: By 5 October after the tax year ends
- Paper tax return: 31 October
- Online tax return: 31 January
- Payment deadline: 31 January (with payment on account in July)
The Cost of Non-Compliance
Here's what late filing and payment can cost you:
| Delay Period | Late Filing Penalty | Interest on Tax | Total Cost |
|---|---|---|---|
| 1 day late | £100 | Starts accruing | £100+ |
| 3 months late | £100 + £10/day | ~£150 | £1,150+ |
| 6 months late | £1,000 or 5% of tax | ~£300 | £2,200+ |
| 12 months late | Additional £1,000 or 5% | ~£600 | £4,200+ |
Filing on time saves you thousands in penalties and interest!
Why This Matters to You
Understanding HMRC reporting requirements helps you stay compliant, avoid costly penalties, and claim all the tax reliefs you're entitled to. Proper record-keeping and timely filing give you peace of mind and protect your wealth.
Our tax specialists help you understand your reporting obligations, maintain proper records, and file accurate returns on time. We'll ensure you're compliant while minimizing your tax bill legally.
Important Investment Warning
This content is for educational purposes only and does not constitute financial advice. We are not FCA-regulated financial advisers. Investments can go down as well as up, and you may lose some or all of your capital. Past performance does not guarantee future results.