Happy New Year! We hope you’ve had a restful holiday and are feeling refreshed for the year ahead.
With January already here, it’s time to take a closer look at the January 31st Self-Assessment deadline—and what to do if you haven’t started yet.
While it may have felt like there’s still time, the deadline will be here before you know it, and if you’re behind, it’s important to act quickly to avoid penalties. Let’s break down what you need to know:
Why the January 31st Deadline Matters
The January 31st deadline is the final date for submitting your Self-Assessment tax return for the 2023/24 tax year (April 6, 2023 – April 5, 2024). If you are self-employed, a company director, a landlord, or have other untaxed income, this deadline is crucial.
But it’s not just about submitting your tax return—January 31st, 2025, is also the day your tax payment is due. Any outstanding tax for the 2023/24 tax year must be paid by this date to avoid penalties and interest.
Haven’t Done It Yet? —Make It Your Priority!
Ideally, you would have had this completed months ago, well ahead of the deadline, with everything organised and ready to go. But if you’re reading this now and realising you haven’t made progress yet, you’re likely feeling stressed and panicked. It’s not too late, but time is running out, and the clock is ticking. Here’s what you need to do right now to get your Self-Assessment done before the deadline of January 31st, 2025:
- Gather all your paperwork (income, expenses, bank statements, receipts, P60/P11D forms, etc.) and get it organised, as outlined earlier. Do not delay! Start right away.
- File your return online using HMRC’s portal. You’ll need to do this before the midnight deadline on January 31st. If you’ve missed the paper return deadline (31st October), online submission is the only option.
- Plan for your tax payment. HMRC will calculate how much you owe once your return is filed. Make sure you pay by January 31st, 2025, to avoid interest and penalties.
Important: If your profit is over £1,000, you will be required to make Payments on Account. These are advance payments towards your next year’s tax bill, and they are due 31st January and 31st July each year. Be sure to plan for these payments as they can sometimes catch people off guard.
Fines and Penalties for Late Filing
Failure to file on time will cost you. Here’s what you need to know:
- If you miss the January 31st deadline, you’ll automatically face a £100 fine, even if you owe no tax. This fine applies whether you’re late by one day or one month.
- If your return is more than 3 months late, an additional penalty of £10 per day will be added, up to a maximum of £900. So, the longer you leave it, the higher the fines will stack up.
- If your return is over 6 months late, HMRC can charge a penalty of £300 or 5% of the tax due (whichever is higher).
- And if your return is more than 12 months late, the fines get even steeper, with penalties potentially rising to £1,000 or more, depending on your tax liability.
The penalties increase the longer you delay. Don’t risk letting the fines spiral. If you haven’t done it yet, make your Self-Assessment your number one priority to avoid unnecessary fines and interest.
For a full breakdown of fines and penalties, check out this link: Self-Assessment Penalties – GOV.UK
Step-by-Step Guide to Preparing for the Deadline
If you’ve left it till the last minute this year, ensure you don’t make the same mistake next year! Here’s a simple step-by-step guide to familiarise yourself with the process and help you better prepare.
Step 1: Gather Your Financial Records
Collect all the documents you’ll need for your Self-Assessment. The earlier you begin, the less stressful the process will be, we always recommend getting it done by September, but you can start filing as early as April 6th.
Income Documents:
- All invoices, receipts for freelance or self-employed work, rental income statements, bank statements, and any other income-related records.
Expense Records:
- Include business-related expenses such as travel, office supplies, software, and any professional fees and training costs.
Other Key Documents:
- If you have a P60, P11D (for benefits in kind), or records of pension contributions or charitable donations, now’s the time to gather those too.
Tip: Using cloud accounting software to track your income and expenses throughout the year can make this step even easier. We have lots of blogs available on cloud software if you want to learn more.
Step 2: Understand Your Taxable Income and Deductions
Calculate your total taxable income from all sources, including self-employment, rental income, savings interest, and dividends. Don’t forget to factor in any business expenses, pension contributions, or other allowable deductions that could reduce your overall tax bill.
Step 3: Use the Online Self-Assessment Portal
Once you have everything in order, you can file your return using HMRC’s online portal. Filing online is faster and mandatory if you have missed the 31st October deadline to file using the paper form. The online submissions deadline for is midnight on January 31st.
Step 4: Know How Much Tax You Owe and Plan for Payment
Once you’ve filed your return, HMRC will send you a calculation of your tax bill. Remember, you need to pay any tax due by January 31st. Payments can be made by bank transfer or online.
Key Deadlines to Remember
If you’ve struggled to keep track of your Self-Assessment deadlines this year and left everything until the last minute, don’t worry—you’re not alone! But it’s important to stay on top of these key dates to avoid unnecessary stress, fines, and penalties. Here’s a rundown of the crucial deadlines for 2025 and 2026 …
Key 2025/26 Deadlines (For Forward Planning):
- 31st July 2025: 2nd Payment on Account due, if applicable from your 2023/2024 submission.
- 5th October 2025: Deadline for registering for Self-Assessment (if you’re a new filer).
- 31st October 2025: Paper submission deadline.
- 31st January 2026: The final deadline for submitting your Self-Assessment return for the 2024/25 tax year and paying any tax due.
- 31st January 2026: 1st payment on account due for the 2024/25 tax year, if applicable.
- 31st July 2026: 2nd Payment on Account due, if applicable from your 2024/2025 submission.
For more information, including payment deadlines and penalties, visit the HMRC Self-Assessment page here.
Important: If your profit is over £1,000, you will be required to make Payments on Account. These are advance payments towards your next year’s tax bill, and they are due 31st January and 31st July each year. Be sure to plan for these payments as they can sometimes catch people off guard.
Staying organised and meeting these deadlines is the key to avoiding fines and stress. If you need help with your Self-Assessment, get in touch with us—we can help you stay on top of all your tax obligations and ensure you’re fully prepared.
