Thousands of taxpayers are facing an "unexpected" tax bill from HMRC after being blindsided by a missed deadline. Businesses and self-employed individuals are among those who could be hit with additional charges from the tax authority and the Labour Party government.
HMRC Figures Show High Filing Rates
HMRC data reveals that 737,891 taxpayers submitted their Self Assessment returns during April 2026. Easter Monday was particularly busy, with 86,270 people filing their 2025/26 returns on April 6. However, Ridgefield Consulting, a tax advisory firm, warns that these early submission rates are masking a deeper issue: a lack of understanding among four specific groups.
Four Groups at Risk
The groups most likely to be caught off guard include freelancers, those with rental income, individuals engaged in side hustles, and people with second jobs. These taxpayers may not be fully aware of how HMRC's "payments on account" system works.
Payments on account are advance payments towards the following year's tax bill. For those encountering this system for the first time, it can come as a surprise and cause confusion. Simon Thomas, managing director of Ridgefield Consulting, explained: "We see many business owners and self-employed workers experiencing the stress of an unexpected HMRC bill arriving, particularly where payments on account increase what they are expecting to pay. The key issue is often cash flow rather than compliance; people aren't necessarily doing anything wrong, they just haven't planned for how the system works."
Expert Advice: Don't Ignore the Problem
Mr. Thomas urged taxpayers not to ignore the issue. "The worst thing taxpayers can do is ignore the issue and wait for payment deadlines to pass," he added. Rachel Harris noted that many taxpayers fall into the same cycle each year by filing in January and then neglecting their finances for the next 12 months. "HMRC absolutely hate it when people do this, and so many of you do it. Once they file their tax return in January, they close the tab, don’t look at their numbers again, while simultaneously promising themselves they’ll do it differently next year. And I know it’s not because you’re lazy or bad with money. It’s because tax has become set up as a once-a-year scramble," she said.
HMRC Encourages Early Filing
Myrtle Lloyd, HMRC’s Chief Customer Officer, encouraged taxpayers to file early and stay on top of their finances. "For thousands of people, filing early and staying on top of their finances has become the norm. It takes the pressure off in January and means they can spend their time focusing on their business and doing things they love," she said.
