Frequently Asked Questions

• Online Filing & Payment: You must submit your return and pay any tax owed by midnight on 31 January 2027.
• Paper Filing: The deadline for paper returns is 31 October 2026. If you haven't filed yet, you must file online to avoid escalating penalties.

 If your tax bill is more than £1,000, you usually have to make two "payments on account" for the next tax year

• First payment: Due 31 January 2026.
• Second payment: Due 31 July 2026.

These can be reduced to £0, however, you will incur interest at 8% per annum on any unpaid amounts

• Your income from self-employment was more than £1,000
• You had rental income over £1,000 (unless you use the £7,500 Rent a Room relief).
• You received dividends or savings interest
• You need to pay the High Income Child Benefit Charge (if your or your partner's income was over £60,000).
• If you pay into a relief at source pension scheme and are in the higher rate tax bracket, you can reclaim the additional tax relief for a potential refund.

HMRC applies penalties strictly, even if you have no tax to pay:

• 1 day late: An automatic £100 fine.
• 3 months late: £10 for each additional day (up to £900).
• 6 months late: 5% of the tax due or £300 (whichever is greater).
• Interest: HMRC also charges interest on late payments (currently around 7.75%).

If you owe less than £30,000, you may be able to set up a "Time to Pay" arrangement online. This allows you to pay your bill in installments. You must set this up before the 31 January deadline to avoid late payment penalties, however, you will still incur interest.

 Starting 6 April 2026, the way you file will change significantly:

• Threshold: If your qualifying income (self-employment and property) is over £50,000, you must keep digital records and send quarterly updates to HMRC.
• Software: You will no longer be able to use the standard HMRC online portal; you will need MTD-compatible software.
• Phase 2: This threshold drops to £30,000 in April 2027.

 If you don't want to calculate every single utility bill or mile, HMRC allows flat-rate "simplified expenses":

• Working from home: If you work 25+ hours a month from home, you can claim between £10 and £26 per month depending on your hours.
• Vehicle mileage: 45p per mile for the first 10,000 business miles (cars/vans) and 25p thereafter.
• Living at your business: If you run a B&B or care home and live there, you can deduct a flat monthly amount for "private use" from your total bills.

 The Annual Exempt Amount is now £3,000.

• If you sold shares, crypto, or a second home and made a profit over £3,000, you must report it.
• Any gains on ISAs are tax free.
• Crucial Note: If you sold a UK residential property, you had 60 days from the completion date to report and pay the CGT. You still need to include this on your Self Assessment even if already paid.

Yes. For every £2 you earn over £100,000, you lose £1 of your £12,570 Personal Allowance. This creates an effective tax rate of 60% in the bracket between £100,000 and £125,140.

Tip: Increasing your pension contributions can bring your "adjusted net income" back below £100,000 to reclaim your allowance

You can amend your tax return for up to 12 months after the 31 January deadline. 

No. You do not send receipts with your return. However, you must keep them for at least 5 years