Taxpayers Kick Off New Year by Filing Self Assessment Returns Early
As the UK approaches the looming Self Assessment tax return deadline, thousands of individuals have gotten a head start on their filings, contributing to the 6.36 million returns already submitted for the 2024 to 2025 tax year. However, approximately 5.65 million taxpayers are yet to complete their returns, risking penalties for late submissions.
New Year’s Filing Surge
On New Year’s Eve and New Year’s Day, more than 54,000 individuals opted to welcome 2026 by filing their tax returns. Among these, 342 people completed their returns in the final hour of 2025, while 19,789 others sacrificed their traditional New Year’s Day outings to manage their tax affairs instead. The most popular filing time was between 11am and 11:59am on December 31st, with nearly 4,000 returns submitted during that hour.
Deadline Approaches
The deadline for submitting Self Assessment returns is fast approaching, with only a month left until January 31st. Taxpayers who fail to submit their returns on time face an initial fixed penalty of £100, regardless of their tax liability. Additional penalties may accrue after three, six, and twelve months, further complicating matters for delayed filers.
Helping Taxpayers Navigate Their Returns
Myrtle Lloyd, Chief Customer Officer of HM Revenue and Customs (HMRC), emphasised the importance of getting tax affairs in order at the start of a new year. She urged individuals who have not yet filed to act swiftly, stating, “The clock is ticking—go to GOV.UK and start today.”
Support and Resources Available
For those struggling with their Self Assessment, HMRC provides a range of online resources designed to facilitate the filing process. Taxpayers can begin their return, save progress, and revisit it as needed prior to submission. It is worth noting that the tax bill does not need to be paid immediately, but must be settled by the January 31st deadline.
Accessing payment options is straightforward through the HMRC app, which allows users to set up notifications for upcoming payments. Detailed information about payment options can also be found on the GOV.UK website.
Upcoming Changes and Important Notes
Looking ahead, sole traders and landlords whose income exceeds £50,000 will be required to transition to Making Tax Digital (MTD) for Income Tax starting April 6, 2026. This will necessitate submitting quarterly summaries of earnings and expenditures, prompting HMRC to encourage early registration for MTD to ensure a smooth transition.
Additionally, those who recently sold assets such as shares should take note of updated Capital Gains Tax rates when completing their returns. Calculating tax owed may require using an adjustment calculator available on GOV.UK, as automatic calculations may no longer be fully reliable.
Stay Informed and Protected
Taxpayers should remain vigilant against scams, particularly those targeting individuals handling Self Assessment returns. HMRC advises that login details should never be shared, even with tax agents. For further guidance on protecting oneself, HMRC’s dedicated scams advice is accessible online.
With over 12 million Self Assessment returns anticipated for the current tax year, it is crucial that individuals complete their filings accurately and promptly to avoid unnecessary penalties.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/565-million-still-to-file-as-the-self-assessment-deadline-looms
