HM Revenue and Customs (HMRC) has issued an urgent warning to workers and freelancers across the UK, highlighting that individuals with four specific types of income must submit a Self Assessment tax return by the end of January or face an immediate financial penalty.
Who Needs to File a Tax Return This Month?
The critical deadline of January 31, 2026 is for returns relating to the tax year from April 6, 2024, to April 5, 2025. According to HMRC, you are likely required to complete a Self Assessment if you received income during that period from any of the following sources:
- Money earned from renting out a property.
- Profits from tips or commission.
- Income from savings, investments, or dividends.
- Money made from cryptoassets, such as selling Bitcoin or Ethereum.
HMRC has made an online tool available to help people check their filing obligation. The service does not send your data to the tax office but provides a clear indication of whether you need to act this month.
The Mounting Cost of Missing the Deadline
Failing to submit your return by 11:59 pm on January 31 triggers an automatic £100 fixed penalty, applied even if you owe no tax or have already paid your bill.
The penalties escalate sharply the longer the return remains outstanding. After three months, daily penalties of £10 per day can be added, up to a maximum of £900. At six and twelve months, further penalties of 5% of the tax owed or £300, whichever is greater, are imposed.
Separate charges apply for late payment of any tax due. Interest is applied from February 1, and additional late payment penalties of 5% of the unpaid tax are levied at 30 days, six months, and twelve months.
Millions Yet to File as Deadline Looms
HMRC revealed that as of January 5, 2026, while over 6.36 million taxpayers had filed, approximately 5.65 million people were yet to submit their returns. The tax authority encourages people to start their return, save their progress, and complete it in stages, noting that payment is not required until the January 31 deadline itself.
HMRC has stated it will treat those with a "reasonable excuse" for missing the deadline fairly, but stresses that individuals must contact the authority before the deadline to explain their situation.
For those whose income from the listed sources only began after April 2025, the submission deadline will be January 31, 2027.
