The deadline to submit your self-assessment tax return and settle any taxes due is quickly approaching. You must file your tax return with HMRC for the tax year 2024/25 by January 31, 2026. It is anticipated that approximately 12 million individuals, including self-employed individuals, will need to file their taxes.
While most people have their taxes automatically deducted from their salaries, those who are self-employed or have additional untaxed earnings must handle their taxes through self-assessment. There are various reasons why you might need to complete a self-assessment tax return, with a penalty of £100 for late submissions.
Failure to submit your self-assessment after three months will result in daily fines of £10, reaching a maximum of £900. Subsequently, after six months, a penalty of 5% of the tax owed or £300 (whichever is higher) will be imposed, with a similar penalty after 12 months of non-compliance.
Upon submitting your self-assessment tax return, you will be informed of the tax amount due, which must be paid by January 31. Additionally, you are typically required to make an initial payment on account for the following tax year, 2025/26. Late payments will incur a 5% charge on any outstanding tax after 30 days, as well as penalties and interest on delayed payments.
According to Money Helper, you may need to complete a self-assessment form if you meet certain criteria.