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5 Critical Things You Must Do Before The HMRC January 2026 Deadline

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As of December 2025, the countdown to the HMRC January 2026 deadline is critically underway, and for millions of UK taxpayers, this date carries more weight than any previous year. This is not just the annual Self Assessment filing date; it represents the final major deadline under the traditional tax system before the seismic shift of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) fundamentally changes how sole traders and landlords report their income.

Failing to prepare now for this crucial deadline—which covers the 2024 to 2025 tax year—will not only result in immediate penalties but will also leave you unprepared for the mandatory digital reporting that begins just a few months later. Understanding the dual significance of 31 January 2026 is essential for financial compliance and future-proofing your business.

The Critical 31 January 2026 Deadline: Your Last Traditional Self Assessment

The deadline of 11:59 pm on 31 January 2026 is the final date to file your online Self Assessment tax return and pay any tax owed for the tax year running from 6 April 2024 to 5 April 2025.

This date is a non-negotiable legal requirement for anyone who needs to file a Self Assessment return, including sole traders, partners in a business, company directors, and landlords.

Who Must File by January 31, 2026?

You must file a Self Assessment return if, during the 2024/2025 tax year, you were:

  • Self-employed as a sole trader and earned more than £1,000 (before taking off any tax-free allowances).
  • A partner in a business partnership.
  • A landlord or received income from property rental.
  • A director of a limited company (unless you were a non-paid director).
  • Received income from savings, investments, or dividends above certain thresholds.
  • Have income from abroad.

The Consequences of Missing the Deadline

HMRC is notoriously strict with late filing penalties. Missing the 31 January 2026 deadline will trigger an immediate £100 late filing penalty, even if you have no tax to pay or have already paid it.

If your return is filed later, the penalties escalate rapidly:

  • 3 months late: An additional penalty of £10 per day, up to a maximum of £900.
  • 6 months late: A further penalty of 5% of the tax due or £300 (whichever is greater).
  • 12 months late: Another 5% of the tax due or £300 (whichever is greater), potentially reaching 15% of the tax due in the worst-case scenario.

Furthermore, late payment of your tax bill will incur interest charges, which start from 1 February 2026, and additional penalties if the debt remains outstanding for 30 days, six months, and twelve months.

The Countdown to MTD for ITSA: What Changes in April 2026?

The significance of the January 2026 deadline is amplified by the fact that it is the last major filing under the old system for many taxpayers. The new era of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) officially begins on 6 April 2026.

This major overhaul will affect millions of sole traders and landlords, fundamentally changing the rhythm of tax reporting from annual to quarterly.

Who is Affected by MTD for ITSA from April 2026?

From the start of the 2026/2027 tax year (6 April 2026), MTD for ITSA becomes mandatory for:

  • Sole traders and landlords whose total gross income from these sources is over £50,000.

A second phase is planned to include those with income over £30,000 from April 2027, with general partnerships following at a later date.

The New Quarterly Reporting Requirement

Under MTD for ITSA, affected taxpayers will no longer submit a single annual tax return. Instead, they must use MTD-compatible software to:

  1. Keep Digital Records: All business records must be kept digitally using the approved software.
  2. Submit Quarterly Updates: Four quarterly summary updates of income and expenses must be submitted to HMRC. The first update for the 2026/27 tax year will cover the period from 6 April 2026 to 5 July 2026 and will be due by 7 August 2026.
  3. Submit an End of Period Statement (EOPS): This is an annual declaration finalising the business figures.
  4. Submit a Final Declaration: This replaces the traditional Self Assessment return and must be submitted by 31 January following the end of the tax year.

The January 2026 deadline is therefore the final opportunity for those affected by MTD to focus solely on their annual return before they must transition to the new, more frequent digital compliance system.

Beyond January: Other Major HMRC and Tax Changes in 2026

While the Self Assessment and MTD changes dominate the headlines, the 2026 calendar year brings other significant changes to the UK tax landscape that taxpayers must be aware of.

Personal Allowance and Tax Band Adjustments

For the 2026/2027 tax year, the tax-free Personal Allowance—the amount of income you can earn before paying Income Tax—is officially planned to be raised to £13,570.

Alongside this, the Income Tax thresholds are also set for adjustment:

  • The basic rate tax band is expected to start at £13,570.
  • The higher rate threshold is planned to rise to £55,000.
  • The additional rate threshold is set to remain at £150,000.
These changes are designed to reflect fiscal policy and will impact the amount of tax paid by millions of workers, self-employed individuals, and pensioners.

Key Dates and Deadlines: A 2025/2026 Tax Timeline

To maintain topical authority and ensure full compliance, here is a breakdown of the most crucial HMRC deadlines spanning late 2025 and 2026:

  • 5 October 2025: Deadline to notify HMRC if you need to register for Self Assessment for the 2024/2025 tax year.
  • 31 October 2025: Deadline for paper Self Assessment tax returns for the 2024/2025 tax year.
  • 30 December 2025: Deadline for filing an online Self Assessment tax return if you want HMRC to collect tax through your PAYE tax code (if you owe less than £3,000).
  • 31 January 2026: The main deadline to file your online Self Assessment return for the 2024/2025 tax year and to pay the tax due, including any first Payment on Account for the 2025/2026 tax year.
  • 6 April 2026: Start of the 2026/2027 tax year. MTD for ITSA becomes mandatory for sole traders and landlords with gross income over £50,000.
  • 31 July 2026: Deadline for the second Payment on Account for the 2025/2026 tax year.

The January 2026 deadline is a pivotal moment. It is the immediate hurdle that must be cleared for the 2024/2025 tax year, but it is also the final warning shot before the mandatory switch to digital reporting under MTD for ITSA. Taxpayers should use the remaining time to gather all necessary documentation, file their return accurately and on time, and, crucially, begin investigating and implementing MTD-compatible software to ensure a smooth transition into the new digital tax landscape starting in April 2026.

5 Critical Things You Must Do Before The HMRC January 2026 Deadline
hmrc january 2026 deadline
hmrc january 2026 deadline

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