A person is a wealthy taxpayer for this purpose if they have total income of at least £200,000. The taxpayer will receive one of three letters depending on whether: 

• they have not registered for ITSA (letter one); or
• they have registered for ITSA and either:
  • their ITSA account is dormant (letter two); or
  • they received a notice to file a tax return for the tax year 2022/23 and haven’t done so (letter three).

Action required 

The letters set out the ITSA criteria for the tax year 2022/23 and ask the taxpayer to check if a tax return is required. If it is, the taxpayer should: 

• register for ITSA if they have not done so previously (letter one) or re-register for ITSA if their ITSA account was dormant (letter two). HMRC has published guidance on how to do this; and
• submit the tax return within 60 days of the date of the letter.  

If the taxpayer believes that a tax return is not required for the tax year 2022/23, for example, because they do not have any additional tax to pay and do not want to claim any reliefs, they are asked to contact HMRC using the details given in the letter.  

HMRC response 

The deadline for submitting the tax return for 2022/23, and for paying any tax due was 31 January 2024. HMRC will charge interest and penalties in respect of any tax paid late. It may also charge a failure to notify penalty where the taxpayer is new to ITSA (letter one) as well as late filing penalties.  

The letter is not a compliance check. Letters two and three explain that HMRC may carry out a compliance check and could charge penalties if it finds that any tax returns contain inaccuracies. Inaccuracy penalties may be reduced where the taxpayer discloses an error to HMRC before it is aware of it. However, letter two states that any disclosure made following receipt of the letter will be treated as prompted by HMRC.  

For taxpayers who received a notice to file a tax return for the tax year 2022/23 (letter three), HMRC may issue a determination of the amount of tax due if a tax return is required and is not submitted. This will allow HMRC to estimate and collect the tax due. The taxpayer can remove the determination by submitting their tax return.  

Any individual who no longer needs to complete ITSA tax returns can ask HMRC to close down their self assessment account.