The deadline is quickly approaching for submitting your self-assessment tax return and settling any tax liabilities. You must file your tax return with HMRC for the 2024/25 tax year by January 31, 2026, a process that around 12 million individuals, including self-employed workers, are expected to complete.
While most individuals have taxes automatically deducted from their wages, those who are self-employed or have additional untaxed income must handle their tax obligations through self-assessment. Failure to file your tax return on time results in a £100 fine, with additional daily penalties of £10 up to £900 if the return remains outstanding after three months.
Further delays in filing incur a penalty of 5% of the tax owed or £300, whichever is higher, after six months, and the same penalty is applied again after 12 months of non-compliance. Once you have submitted your self-assessment tax return, you will be informed of the tax amount due, which must also be paid by January 31. Additionally, a first payment on account for the following tax year, 2025/26, is typically required.
Late payments attract a 5% charge on any outstanding tax after 30 days, at six months, and at 12 months. Interest is also applied to overdue payments. According to Money Helper, you may need to complete a self-assessment form under various circumstances.