New year, tight deadline. January 31st is the UK’s Self Assessment tax return deadline – and if you’re a busy small business owner or sole trader, it’s coming up fast. Missing the deadline isn’t an option unless you fancy a £100 late filing penalty (and more penalties as time goes on). The good news? There’s still time to get your tax return sorted if you act now. This guide will help you survive the last-minute rush and avoid being one of the 1.1 million taxpayers who missed the deadline last year (source: ICAEW).
Are you staring at a pile of receipts and invoices from the last year, unsure how to start your tax return? You’re not alone – January panic is common. Many small business owners procrastinate on their Self Assessment. In fact, HMRC reported that over 732,000 people filed on deadline day itself last year. Filing at the 11th hour is stressful and risky. The problem is clear: the clock is ticking, and the task isn’t done.
Let’s talk consequences. Missing the 31 January deadline means an automatic £100 fine even if you owe no tax. Wait another 3 months and daily penalties of £10 kick in. Plus, if you owe tax and miss payment, interest and additional penalties will pile on. Imagine handing over hundreds of pounds to HMRC just because the return was late. It’s not just about money either – the stress of knowing you’re late, or the dread of a brown envelope from HMRC, can hang over you and your business. Nobody needs that kind of anxiety so soon in the new year.
Now picture this: it’s mid-January and instead of panicking, you’ve filed your return and can focus on running your business. Let’s make that happen. Here’s your last-minute Self Assessment survival plan:
Get your paperwork in order – today. Block out a couple of hours to gather everything: invoices, expense receipts, bank statements, loan interest, payroll info if you have staff, etc. A tidy digital folder will save you from scrambling. Run reports for the tax year from your accounting software (income, expenses, profit).
Remember allowable expenses. Don’t pay more tax than you should. Common allowable expenses for sole traders include a portion of home office costs, mileage, professional subscriptions, business insurance, and office supplies. HMRC’s A–Z of expenses can help ensure nothing is missed.
File online ASAP. Log in to the HMRC Self Assessment portal and complete the return using your records. Filing during off-peak hours (early morning or late evening) can help avoid website slowdowns near the deadline.
Double-check before hitting submit. Ensure all income streams are included, expenses are claimed correctly, and figures are entered in the right boxes. Use HMRC’s calculator to sense-check your tax bill.
Don’t forget payment. Any tax owed is also due by 31 January. HMRC offers several payment options. If you can’t pay in full, contact HMRC to arrange a “Time to Pay” plan before missing the deadline.
The finish line is in sight. If you’re completely lost, a bookkeeper or accountant can help—often saving more in tax than their fee. Most importantly, don’t miss the deadline. Imagine the relief on 1 February knowing it’s all done: no fines, no stress, just a fresh start to the year.
The information contained herein is provided for information purposes only; the contents are not intended to amount to advice and you should not rely on any of the contents herein. We disclaim, to the full extent permissible by law, all liability and responsibility arising from any reliance placed on any of the contents herein.
