HM Revenue & Customs (HMRC) is preparing to issue fines to UK households who work for themselves if they fail to file a tax return despite earning over £1,000. According to the latest HMRC figures, more than 12 million individuals are expected to submit self-assessment tax returns for the 2024/25 tax year.
Charlene Young from financial services firm AJ Bell highlighted the urgency, stating, “The festive season is behind us, yet millions remain unfiled ahead of the 31 January deadline.” Although nearly 20,000 people submitted returns on New Year’s Day, less than half of the anticipated 12 million returns have been received so far.
Those required to file include self-employed individuals whose earnings exceed £1,000, people liable for capital gains tax on assets sold or transferred for profit, and those subject to the High Income Child Benefit Charge not collected through PAYE. Business partners in partnerships are also obligated to submit returns. Additionally, individuals earning more than £10,000 from savings and investments during the tax year may need to file, even if other criteria don’t apply.
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Young emphasized the importance of timely payment: “Regardless of when you file, ensure any tax owed is paid by midnight on 31 January 2026.” Failure to pay on time will result in daily interest charges starting 1 February. The interest rate will rise to 7.75% from 9 January 2026, with extra penalties for prolonged non-payment.
For those facing financial difficulties, HMRC offers options to set up online payment plans for balances up to £30,000. Taxpayers can also request reductions to their payments on account if they anticipate significantly lower income in the following year, providing some relief for changing financial circumstances.