HMRC has issued an urgent warning to anyone who is self-employed, with just 100 days to go until the deadline for Self-Assessment tax returns for the 2024/25 tax year
HM Revenue and Customs (HMRC) has issued a stark warning to self-employed people, reminding them that there are only 100 days left until a crucial deadline that could result in hefty fines. HMRC data reveals that more than 3.5 million people have already submitted their Self-Assessment tax return for the 2024/25 tax year.
However, HMRC customers only have until January 31, 2026, to file their tax return, with the government body strongly advising many to do it early to sidestep any potential problems. It emphasises that starting your return early allows you to revisit and amend it as needed until the deadline passes, and enables you to determine how much tax you owe sooner.
The government department has also alerted customers to changes that could impact their tax return before the deadline, including alterations to Capital Gains Tax rates if assets were sold after October 30, 2024. The new High Income Child Benefit digital service may affect some parents who opt to repay it through their tax code.
On X, HMRC stated: “There are 100 days to go until the #SelfAssessment deadline. Watch our video below to hear how getting ahead and filing your tax return early could help you.”
Myrtle Lloyd, HMRC’s chief customer officer, stated: “With 100 days to the Self Assessment deadline, now is the time to get started. Completing your return now means you know you how much tax you need to pay ahead of the deadline. We are here to help with lots of help and advice, just search ‘file a tax return’ on GOV.UK to find out more.”
Penalties for submitting a tax return late
HMRC has the authority to issue a financial penalty for any overdue tax return. Starting with a fixed £100 charge, this can quickly escalate if ignored.
If you fail to file your tax return within three months of the deadline, you’ll face additional penalties of £10 daily, up to a maximum of £900. After six months have passed, this penalty jumps to five per cent of the tax owed or £300, whichever amount is greater.
After a year, an extra charge of five per cent or £300 will be imposed – whichever figure is the highest. HMRC emphasises that these fees can be easily avoided by simply submitting your Self Assessment tax return on time.
How to submit your tax return for Self Assessment
HMRC has highlighted that it’s easier to file your tax return online, with 97 per cent of people already doing it this way. It also highlights that online returns do not have to be finished in one sitting, and details can be saved to be finished at a later date, where appropriate.
HMRC guidance states you may need the following to assist you in filling in the form:
- A P45 ‘Details of employee leaving work’
- Bank statements
- A P11D ‘Expenses or benefits’
- Dividend counterfoils
- Investment brokers’ schedule
- A P60 ‘End of Year Certificate’
- Personal pension contribution certificates
- Building society passbooks
- Business records
- Payslips or your P2 ‘Paye Coding Notice’
- Your profit or loss account
Keep in mind, though, you cannot use the online service if you’re filling the tax return in any of these circumstances:
- For a trust or for an estate
- If you get income from a trust, you’re a Lloyd’s underwriter, or a religious minister
- To report multiple ‘chargeable event gains’, for example from life insurance
- For a partnership
- If you lived abroad as a non-resident
Further advice on how to file your tax return can be found here.