HMRC reminds ‘less than one month’ before major tax deadline | Personal Finance | Finance
HMRC has issued a reminder that only a few weeks remain before a key deadline, with workers who miss it potentially facing fines of £300 or more.
The tax authority has previously warned that anyone required to complete a Self Assessment must settle their taxes no later than 11.59pm on 31 January 2026. This cut-off date applies specifically to those submitting online tax returns, rather than paper versions, which should have been lodged by 31 October last year.
Those who failed to submit paper returns on time will already be liable for late filing penalties. A Self Assessment tax return is mandatory if you were classified as a self-employed ‘sole trader’ earning more than £1,000 in the preceding tax year, had Capital Gains Tax obligations when selling or disposing of an asset that increased in value, or were a partner in a business partnership.
In a post on X, HMRC stated: “There’s less than one month to go to file your tax return. File yours today and pay your tax bill ahead of the deadline.”
A return may also be necessary if you were liable for the High Income Child Benefit Charge and don’t settle it through PAYE, or if you have untaxed income, which could include foreign earnings, tips and commissions, and rental income from property. You can verify whether you need to submit a tax return here.
Penalties for missing the self-assessment deadline
HMRC has the authority to impose financial penalties for late submission of tax returns. Starting with a fixed £100 fine, this can quickly escalate if not addressed.
If you fail to submit your tax return within three months of the deadline, additional penalties of £10 per day will be imposed, up to a maximum of £900. After six months, this penalty increases to either five per cent of the tax due or £300, whichever is higher.
A further charge of 5% or £300, again whichever is larger, will be applied after a year. HMRC emphasises that these penalties can be easily avoided by simply submitting your Self Assessment tax return on time.
Moreover, those who don’t pay their tax on time will initially be charged 5% of the unpaid tax 30 days after the due date. This penalty will then rise by an extra 5% if the payment is six months and 12 months late, respectively.
HMRC also points out that interest will be charged on any outstanding tax owed.
What happens if I receive a penalty?
If you are hit with a penalty by HMRC for either a late tax return or a late payment, you might be able to avoid paying it if you challenge the decision. According to HMRC guidelines, one valid reason for disputing the penalty is if you have a ‘reasonable excuse’.
Usually, you have a 30-day window from the date the penalty was issued to get in touch with HMRC and officially file an appeal. If a deadline has been missed, you’ll need to provide a justification for the delay.
The procedure for filing an appeal can differ greatly depending on the type of tax you pay and whether you’re employed or self-employed. Comprehensive details can be found here.
