HM Revenue & Customs (HMRC) has issued a stark warning to millions of Britons, urging them to complete their Self Assessment tax returns before the fast-approaching deadline of 31 January 2026.
Failure to submit the necessary documentation on time will result in an immediate £100 penalty. The tax authority has highlighted that almost 5.65 million people have yet to file their returns, with many potentially unaware they need to do so.
Four Key Income Types Requiring a Self Assessment
In a recent social media post, HMRC clarified that you likely need to complete a tax return if you received income from any of the following four sources in the last tax year:
- Earning more than £1,000 from a side hustle or freelance work.
- Being self-employed as a sole trader.
- Receiving income from renting out a property.
- Using or trading cryptoassets like Bitcoin.
These categories cover a wide range of modern earnings that individuals might not automatically associate with a formal tax return.
Act Now to Avoid Penalties
Myrtle Lloyd, HMRC’s Chief Customer Officer, encouraged people to take action promptly. "New Year is a great time to start afresh," she said. "What better way than to ensure your tax affairs are in order for another year than completing your tax return. If you have yet to start, the clock is ticking, go to GOV.UK and start today."
HMRC reassures customers that comprehensive online help is available on the GOV.UK website. You can start your return, save your progress, and revisit it as many times as needed before final submission.
It is important to note that while the return must be filed by 31 January, any tax bill calculated does not have to be paid immediately but must also be settled by the same deadline. The tax authority recommends using the official HMRC app as the simplest way to make a payment.
