With a new tax year fast approaching, now is the ideal time to get your finances organised and avoid the January rush.

Last year, over 11.48 million taxpayers submitted their tax returns to HMRC on time. Around 475,722 people filed on deadline day, with 27,456 submissions made in the final hour between 23:00 and 23:59. An estimated over 1 million people missed the deadline, risking a £100 late filing penalty, and 97.25% of tax returns were submitted online.

Early filing continues to grow in popularity. In April 2025, a record 299,419 taxpayers submitted their returns, including 57,815 on the very first day of the tax year (6 April). By the end of May 2025, more than 1 million returns had already been filed, showing that a significant number of taxpayers are choosing to get ahead well before the January deadline.

According to a YouGov survey, 34% of respondents who had previously filed a tax return said their biggest concern was worrying about making a mistake, followed by 28% who worried about understanding tax rules, and 19% who were concerned about the deadline.

But it doesn’t have to be stressful, especially if you keep your records up to date throughout the year or have expert support. Our team supports thousands of freelancers and small business owners to manage their accountancy online, including their Self Assessment tax return.

Here we explain more about what’s involved.

Who needs to complete a Self-Assessment?

You will normally need to complete a Self Assessment if you are self-employed, a partner in a business, or have other untaxed income. Company directors and shareholders may also need to file, particularly if they receive dividends or other income not taxed at source.

We can register you for Self Assessment and prepare and submit your tax return on your behalf. This ensures everything is done correctly and makes life easier for you. With a dedicated accountant by your side, all you have to do is pay your tax bill using the reference provided by HMRC once your return has been submitted.

What to include in a tax return?

To complete your tax return, it is necessary to document all your income sources over the year. There are may different types of income, but these generally fall into

• 💼 Employment & Pension Income - Salary and wages, bonuses, commission, tips, Benefits in kind (e.g. company car, private medical insurance), State Pension, private and workplace pensions, pension lump sums (in some cases)
• 🧾 Self-Employment & Business Income - Sole trader or freelancer income, partnership income, casual or “side hustle” earnings (e.g. online sales, services), income from gig economy work (e.g. delivery, ride-sharing)
• 🏡 Property Income - Rental income from UK property, rental income from overseas property, Furnished Holiday Lettings income, income from renting out a room (even if partially covered by the Rent a Room Scheme)
• 💰 Savings & Investment Income - Bank and building society interest, interest from peer-to-peer lending, dividends from shares, income from investment funds or unit trusts, government or corporate bond interest
• 📈 Capital Gains - Profit from selling shares or investments, sale of a second home or rental property, disposal of valuable assets (e.g. antiques, art)
• 🌍 Foreign Income - Overseas employment income, foreign pensions, rental income from overseas property, foreign dividends and interest
• 💸 Other Taxable Income - Tips not included in PAYE, commission, income from trusts or settlements, royalty income (e.g. from books, music, patents), income from occasional work or one-off jobs, income from cryptoassets (trading, staking, etc.)
• ⚠️ Not Always Obvious (but often reportable) - Child Benefit (if subject to High Income Child Benefit Charge), Student Loan repayments, redundancy payments over £30,000, certain insurance payouts or compensation (depending on type)

How is tax calculated?

The amount of Income Tax you pay depends on the type of income you receive and how much you earn above the Personal Allowance of £12,570 for the 2025/26 tax year.

Your income is taxed according to the band it falls into:

Your Personal Allowance of £12,570 reduces by £1 for every £2 of income above £100,000, meaning it is reduced to £0 at £125,140.‍ Scottish rates are different to England, Wales and Northern Ireland, please click her for a summary.

Dividends

Dividends are taxed differently from other types of income, such as employments, pensions, savings interest and property income.

For the 2025/26 tax year, the following rates apply:

Deadlines and penalties

Below are the key deadlines for the tax year ended 5 April 2026 (25/26) covering the period 6th April 2025 to 5th April 2026:

Other key dates

• Start of new tax year: 6 April 2026‍
• Deadline to opt for PAYE collection: 30 December 2026
• End of tax year: 5 April 2027

You will need to submit your online return by 30th December 2026, if you want to request HMRC to automatically collect any tax from your wages or pension, in the year ended 5th April 2028.

Last year, a total of 37,435 people submitted their tax returns between 24th and 26th December 2025, with 4,606 taxpayers filing on Christmas day! We’re sure you’ll agree that it’s much better to be organised in advance so that you can forget about taxes into the spring and summer months, before you even get to the festive period.

The penalties for filing a tax return late are:

• £100 fixed penalty for late submission, even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late - 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

For more information on any aspect of Limited Company or Sole Trader (Self Employed) accountancy, or help with preparing your tax return, please get in touch.

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