The deadline to submit your self-assessment tax return and settle any tax liabilities is quickly approaching. You must file your tax return with HMRC for the 2024/25 tax year by January 31, 2026. It is estimated that approximately 12 million individuals, including self-employed individuals, will need to file their tax returns.
While most people have taxes automatically deducted from their salaries, those who are self-employed or have additional untaxed income must use the self-assessment system to pay their taxes. Failure to submit your tax return on time will result in a £100 penalty. Further delays will incur daily fines of £10, up to a maximum of £900 after three months.
If the self-assessment remains unfiled after six months, a penalty of 5% of the tax owed or £300 (whichever is higher) will be imposed. An additional penalty of the same amount will be levied after 12 months of non-compliance. Once you have filed your self-assessment tax return, the amount of tax owed will be communicated to you. The deadline for settling this tax amount is also January 31, and you may need to make an initial payment for the following tax year.
Late payments will attract a 5% charge on any outstanding tax after 30 days, six months, and 12 months, with interest also being applied. Money Helper suggests that you may be required to complete a self-assessment form under various circumstances.
