The deadline for submitting your self-assessment tax return and settling any outstanding tax is rapidly approaching. Individuals have until January 31, 2026, to submit their tax returns to HMRC for the 2024/25 tax year. An estimated 12 million individuals, including self-employed individuals, are expected to file their returns.
While most people have taxes automatically deducted from their salaries, those who are self-employed or have additional untaxed earnings must manage their taxes through self-assessment. Failure to file your tax return on time results in a £100 fine, with additional daily penalties of £10 up to a maximum of £900 if the return remains outstanding after three months.
Further penalties apply if the self-assessment remains unfiled after six months and 12 months, amounting to 5% of the tax owed or £300, whichever is higher. Upon submission of the self-assessment tax return, individuals are informed of their tax liabilities, which must be paid by January 31. Additionally, the first payment on account for the 2025/26 tax year is typically required.
A 5% charge is imposed on any unpaid tax after 30 days, six months, and 12 months, along with interest on late payments. According to Money Helper, individuals may be required to complete a self-assessment form under various circumstances.