The deadline for submitting an online Self-Assessment tax return is now only two months away, and many self-employed workers, sole traders and landlords will be turning their attention to their financial records.
As 31 January 2026 draws closer, time is running out to prepare your accounts and file your return with HM Revenue & Customs (HMRC) if you want to avoid fines or other penalties, you must ensure your submission is completed on time.
Delaying your legal responsibilities makes the entire process far more stressful, especially when you are rushing to gather documentation, clarify figures and ensure your accounts are in order.
You will also have lost the opportunity to plan ahead financially, as filing early allows you to know what you owe while giving you until the deadline to make the payment.
By putting it off, you are forced to complete both the filing and the payment at the same time, while making sure that your calculations are precise.
As the deadline looms, mistakes are far more common because there is heightened pressure to make sure everything is ordered and calculated correctly, especially as HMRC expect information to be filed correctly.
You also need to factor in the impending arrival of Making Tax Digital (MTD) for Income Tax, which will fundamentally change how certain Self-Assessment taxpayers maintain and report their financial records.
From April 2026, individuals who fall within MTD rules will be required to keep digital records and submit quarterly updates to HMRC.
Those earning £50,000 or more will be subject to these rules first, with the threshold reducing to £30,000 in 2027 and £20,000 in 2028.
With the current Self-Assessment deadline rapidly approaching, now is the ideal time to get started, easing the pressure and avoiding a frantic rush in the New Year.
In the run-up to the filing deadline, you must ensure your accounts are well organised and that you have all the necessary details, such as your Unique Taxpayer Reference (UTR).
Keeping your books in order gives you clarity over key areas of your finances, including income, expenditure, allowable business costs, tax liabilities and overall turnover.
Accuracy is crucial, as underpaying your taxes can have serious repercussions.
HMRC may issue penalties and could open an enquiry into your tax affairs, scrutinising your figures and submissions for any inconsistencies or concerning activity.
For sole traders and landlords, such investigations can damage your reputation, potentially deterring customers and reducing your income and profit.
Missing the deadline by even a single day results in an immediate £100 fine, with further charges applied if the delay continues.
Penalties escalate the longer you fail to respond to deadlines or HMRC correspondence.
Once a payment is 30 days overdue, a first penalty equivalent to five per cent of the outstanding tax is applied.
If the situation is not resolved within six months, a further five per cent penalty is added.
Altogether, you could face penalties totalling 15 per cent of the tax owed, as an additional five per cent is imposed 12 months after the original due date.
Persistent failure to meet your obligations could even result in legal or criminal action, including the possibility of imprisonment.
As time is of the essence, seeking professional support can make a significant difference and our team of accountants is ready to assist you.
We can help you prepare your accounts in advance, verify your figures, calculate the tax due and give you a clear understanding of your financial position.
Our aim is to equip you with everything you need to meet your legal responsibilities confidently. With the deadline approaching, there is no better moment to plan ahead and eliminate any last-minute pressure or worry.
For expert assistance in completing your Self-Assessment tax return, get in touch with our team today.
