Overview
- Taxpayers filing on paper must ensure HMRC receives returns by 31 October or face an automatic £100 penalty, with daily £10 fines after three months and larger charges for longer delays.
- Online Self Assessment returns and any tax due must be submitted by 11.59pm on 31 January 2026, with HMRC urging people to file early as interest on unpaid tax accrues from 1 February.
- HMRC is running a ‘Tax is changing’ campaign as Making Tax Digital for Income Tax begins on 6 April 2026, requiring quarterly updates via recognised software for self‑employed people and landlords with turnover above £50,000.
- The MTD regime expands to those earning over £30,000 from April 2027 and over £20,000 from April 2028, even as 304,000 returns were still filed on paper last year compared with 11.2 million online.
- Industry commentary highlights preparation costs, citing HMRC analysis of around £280 per business to transition and about £160 million a year in software expenses, with roughly 900,000 sole traders and landlords expected to join MTD in 2026.