The upcoming deadline to submit your self-assessment tax return and settle any outstanding taxes is quickly approaching.
You are required to file your tax return with HMRC for the 2024/25 tax year by January 31, 2026. An estimated 12 million individuals, including self-employed individuals, are anticipated to file their returns.
While most people have taxes automatically deducted from their pay, those who are self-employed or have additional untaxed earnings must handle their tax obligations through self-assessment.
Failing to file your tax return on time will result in a £100 penalty. If you continue to delay your self-assessment for more than three months, you will face additional daily fines of £10, capped at £900.
Further penalties of 5% of the taxes owed or £300, whichever is higher, will be imposed after six months, with the same penalty repeated after 12 months of non-compliance.
Upon submission of your self-assessment tax return, you will receive details of your tax liability. The deadline for paying this amount, along with the first payment on account for the 2025/26 tax year, is also January 31.
A penalty of 5% will be levied on any outstanding tax after 30 days, six months, and 12 months, in addition to interest charges on late payments. Money Helper suggests that you may need to complete a self-assessment form if certain criteria apply.