Millions of self-employed Brits risk last-minute tax rush ahead of HMRC deadline

Mike Parkes, Technical Director at GoSimpleTaxMike Parkes, Technical Director at GoSimpleTax
Mike Parkes, Technical Director at GoSimpleTax
Nearly half of self-employed people in the UK have yet to complete their tax returns with just a month to go until the HMRC self-assessment deadline.

A new survey has found that nearly half of self-employed individuals plan to complete their tax returns with just a month or less to spare. This equates to approximately 2.1 million people in the UK who are still to tackle the task.

A quarter of respondents said that they plan to start their submissions with less than three weeks to go until the deadline, while 15% admitted they would leave the task until a week or less before self-assessments are due.

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Approximately 87,000 people, 2% of self-employed individuals, are expected to attempt to file their tax return only on the deadline day, 31st January.

One in four self-employed people report spending an entire working day or longer on their submissions, leading to concerns about the time it takes to complete a self-assessment tax return.

The findings have led to a warning from self-assessment tax software firm GoSimpleTax to avoid leaving the task until the last minute, to avoid unexpectedly high bills, fines and penalties.

Mike Parkes, Technical Director at GoSimpleTax, commented: “Submitting your tax return as early as possible is not just about avoiding the stress of a last-minute task. It’s about protecting yourself from potential financial shocks and serious penalties. Our research shows that many people spend well over a day completing their tax returns, which means that leaving it too late can risk missing the 31st January deadline entirely. If that happens, HMRC will issue an immediate £100 fine. On top of that, every additional day for up to three months incurs an additional £10 fine, adding up to £900. After that, additional fines can push the total to £1,600 if you file a year late.

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“If you also miss the January deadline for paying your tax bill, extra charges will be added to what you owe. The process can feel daunting and it’s easy to under-estimate how much time it might take you, but leaving it to the last minute can create unnecessary stress, especially if you find out you owe more than you expected. By starting early, you can address any challenges, submit accurate information and pay your tax bill in plenty of time – starting the new year with peace of mind that your finances are up-to-date.”

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