The deadline for submitting Self Assessment tax returns and paying income tax and National Insurance for the 2024-2025 tax year is fast approaching: 31 January 2026. This date applies to all self-employed individuals in the UK who need to declare their profits from the previous year. Failure to meet this deadline incurs penalties, making timely submission critical.
Mike Parkes of GoSimpleTax highlights a common pitfall for freelancers: focusing solely on client invoices to the detriment of financial planning. This can leave individuals short of funds for tax payments, pensions, or savings when the January deadline arrives. He suggests proactive financial management, including tax budgeting, can alleviate the stress associated with this annual obligation.
For those new to Self Assessment or managing side hustles, HMRC's Jashoda Pindoria explains the process. Self Assessment is the mechanism for sole traders and freelancers to pay tax on their income, as they are not taxed automatically via PAYE. The current reporting period covers 6 April 2024 to 5 April 2025.
GOV.UK offers a tool to determine if a tax return is necessary. Registration for Self Assessment, if required, initiates HMRC's contact, providing a Unique Taxpayer Reference (UTR). This 10-digit number is essential for filing online via GOV.UK, alongside National Insurance numbers and detailed financial records including income, earnings, and savings interest.
Tax returns must encompass all taxable income and eligible expenses. Contributions to charities or pensions qualifying for tax relief should also be included. Maintaining meticulous records of income and outgoings, such as bank statements, invoices, and receipts, is vital for accurate filing.
While tax agents or trusted individuals can assist with returns, the ultimate responsibility for accuracy and timely submission rests with the individual. Crucially, HMRC login details should never be shared. Payments can be made swiftly via the HMRC app. For those anticipating difficulty meeting their tax bill, HMRC offers payment plans, including 'Time to Pay' arrangements for eligible customers to spread costs over an agreed period.
