August 17, 2026/
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A tax return can look complete while still missing income, overlooking relief or leaving you unprepared for the payment. The aim is to submit accurate figures and know what you need to pay.
A Self Assessment tax return tells HMRC about your taxable income, gains and relevant reliefs so your tax position can be calculated. For the 2025/26 tax year, covering 6 April 2025 to 5 April 2026, the usual online filing and payment deadline is 31 January 2027. Whether you need a return depends on your circumstances, including your income sources and any notice from HMRC. HMRC: Self Assessment deadlines.
Self Assessment is relevant to more than the self-employed. Employees, landlords, investors and company directors may need to file, depending on their circumstances.
Your situation | What to check |
Sole trader or freelancer | HMRC normally requires a return if total self-employment income exceeds £1,000 before expenses. |
Employee with a side business | PAYE on your salary does not settle tax on separate trading income. Check the trading threshold and any other filing reasons. |
Business partner | You normally need an individual return reporting your partnership share. The partnership return is a separate obligation. |
Landlord | Rental income has its own reporting thresholds; receiving rent does not automatically mean every landlord needs the same reporting route. |
Company director or shareholder | Directorship alone does not automatically require a return. Check dividends, other income and whether HMRC has requested one. |
Person with investment or overseas income | Check reporting requirements against your income, residence position and available reliefs. |
Person who sold investments or other assets | Check Capital Gains Tax reporting separately; some disposals have earlier deadlines. |
Person liable to the High Income Child Benefit Charge | A return may be needed, unless the charge is paid through the available PAYE route. |
Use HMRC’s filing criteria and its Self Assessment checker to assess your position.
Some tax can be collected without a Self Assessment return. Check the reporting route as well as the amount owed.
For dividends outside an ISA, the £10,000 reporting threshold refers to dividend income before deducting the dividend allowance. Above £10,000, a return is required; at lower amounts, tax due can sometimes be reported directly to HMRC. If you already file, include reportable dividends in the return. HMRC: reporting dividends.
For personally owned rental property, HMRC says a return is required where income exceeds £2,500 after allowable expenses or £10,000 before expenses. Smaller amounts above the property allowance can still need reporting to HMRC. Special rules, including Rent a Room relief, can affect the position. HMRC: tax on rental income.
If HMRC has issued a notice to file, do not simply ignore it because you think no tax is due. Ask HMRC to withdraw the requirement if it no longer applies. LITRG: filing requirements.
For income earned between 6 April 2025 and 5 April 2026, the main dates are:
Action | Usual deadline |
Notify HMRC if newly required to file, or reactivate where required | 5 October 2026 |
Submit a paper tax return | HMRC must receive it by 31 October 2026 |
Submit online if seeking eligible collection through your PAYE tax code | 30 December 2026 |
Submit your online 2025/26 return | 31 January 2027 |
Pay the 2025/26 balancing liability and first 2026/27 payment on account, if applicable | 31 January 2027 |
Pay the second 2026/27 payment on account, if applicable | 31 July 2027 |
Special deadlines can apply, including where HMRC issues a late notice to file. A later submission deadline does not necessarily move the payment date. HMRC: filing and payment deadlines.
PAYE collection normally requires a bill below £3,000, existing PAYE income and sufficient income for HMRC to collect the amount, as well as timely filing. This earlier filing date allows eligible tax to be collected through wages or a pension. HMRC: paying through your tax code.
A property sale may need action much sooner. A UK resident with Capital Gains Tax to pay on a UK residential property disposal normally needs to report and pay within 60 days of completion. Do not wait for the annual return. Non-residents have wider UK property reporting obligations, including where no tax is payable. HMRC: Capital Gains Tax deadlines.
If this is your first return, follow the appropriate HMRC registration route. If you have filed before but your account is inactive, you may need to reactivate it.
Allow time to obtain or locate your Unique Taxpayer Reference and confirm that you can access the filing service. An online account and an active Self Assessment registration are separate things to check.
Gather records for the whole tax year, including income on which tax has already been deducted.
Income or claim | Useful records |
Employment and pensions | P60s, P45s, taxable benefits information and pension statements |
Self-employment | Sales records, invoices, bank transactions and business expense receipts |
Rental property | Rent schedules, agent statements, expense invoices and finance statements |
Savings and investments | Interest certificates, dividend vouchers and investment statements |
Asset disposals | Purchase and sale records, fees and relevant improvement costs |
CIS subcontracting | Contractor payment and deduction statements |
Relief claims | Pension contribution statements and Gift Aid donation records |
Compare your records with last year’s return. Check new accounts, changed jobs and additional properties rather than carrying old figures forward.
Self-employed people normally need to retain business records for at least five years after the relevant 31 January submission deadline. For an on-time 2025/26 return, that means at least the end of January 2032. Longer retention can be necessary in particular circumstances. HMRC: keeping business records.
Many individuals can use HMRC’s free online service. Others need commercial software, an agent or paper forms because the free service does not support their circumstances.
Check this early if you need residence pages, have trust income or are dealing with a partnership return. Being unable to use HMRC’s free online service does not necessarily prevent electronic filing through suitable software. HMRC: sending a return.
Your return should reflect all the income and gains that need reporting, including relevant employment income already taxed through PAYE. The main individual return is SA100; additional sections cover matters such as self-employment, property, partnership income and capital gains.
Your business accounts are only one part of the calculation. LITRG: what a return includes.
Review income totals, expense claims, tax already deducted and any student loan information. Compare the result with your expectations and investigate large differences.
Submit the return and save its confirmation and calculation. Then arrange payment separately, allowing for the processing time of your chosen method. Check your Self Assessment account for payments already credited. HMRC: paying your tax bill.
Where records are missing, try to obtain replacements first. If estimates or provisional figures are necessary, disclose them appropriately and replace provisional figures when the actual amounts become available. HMRC: missing records.
For a sole trader, allowable business expenses reduce taxable profit. Depending on the circumstances, these can include business insurance, software, office costs, qualifying travel, staff costs and advertising.
Only claim the business element of mixed-use costs. Personal drawings are not a deductible business expense, and equipment can require different treatment depending on the accounting basis and asset.
Where available, the £1,000 trading allowance replaces actual trading expense deductions; you cannot claim both against the same income. Compare the options before choosing. HMRC: self-employed expenses.
Customer hospitality is generally disallowed. Discussing business over dinner does not make the meal tax-deductible. HMRC: entertainment expenses.
For individual residential landlords, mortgage capital repayments are not deductible, and qualifying finance costs are generally subject to a basic-rate tax reduction rather than an ordinary deduction from rental income. Repairs and improvements also need different treatment. Our landlord accountants can help review those distinctions. HMRC: residential finance-cost relief.
The furnished holiday lettings regime ended for Income Tax from 6 April 2025. Check the treatment of former holiday-let income and expenses under the rules applying from that date. HMRC: property expenses and FHL changes.
Higher-rate taxpayers contributing to a relief-at-source pension may need to claim additional relief themselves. Check the scheme’s contribution method before entering figures so that relief is not claimed twice. HMRC: pension tax relief.
Gift Aid donations can also produce additional relief for eligible taxpayers paying above the basic rate. Keep a record of your donations and make sure the underlying Gift Aid conditions are met. HMRC: Gift Aid.
Consider a sole trader in England with £40,000 turnover and £5,000 allowable expenses in 2025/26.
This illustration assumes the standard Personal Allowance, liability to Class 4 National Insurance, no other income, losses, pension adjustments, student loans or additional charges, and no tax already deducted.
Calculation | Amount |
Turnover | £40,000.00 |
Less allowable expenses | £5,000.00 |
Taxable business profit | £35,000.00 |
Less Personal Allowance for Income Tax | £12,570.00 |
Income subject to Income Tax | £22,430.00 |
Income Tax at 20% | £4,486.00 |
Class 4 NI: £22,430 × 6% | £1,345.80 |
Income Tax and Class 4 NI for the year | £5,831.80 |
The example uses HMRC’s 2025/26 Income Tax figures and National Insurance rates. Scottish Income Tax bands differ, and other income can change the calculation.
No separate Class 2 payment is due in this ordinary sole-trader example: at this profit level, contributions are treated as paid. Lower-profit cases can require a separate review of voluntary contributions. HMRC: self-employed National Insurance.
The £5,831.80 annual liability feeds into the payment calculation below.
Payments on account are advance payments towards the next tax year. They generally include Income Tax and Class 4 NI, but exclude Capital Gains Tax and student loan repayments.
HMRC normally requires them unless the relevant previous tax bill was below £1,000 or more than 80% of your tax was paid outside Self Assessment.
Continuing the £35,000-profit example, assume this is the trader’s first return, with no previous payments on account and no reduction claim:
Due date | Payment | Amount |
31 January 2027 | 2025/26 liability | £5,831.80 |
31 January 2027 | First advance towards 2026/27 | £2,915.90 |
Total due in January |
| £8,747.70 |
31 July 2027 | Second advance towards 2026/27 | £2,915.90 |
The first January payment can include the completed year’s liability plus half of the next year’s estimated liability.
If your next liability will be lower, you may be able to reduce them. Reducing them too far can result in interest. HMRC: payments on account.
Making Tax Digital for Income Tax introduces digital records, compatible software and quarterly updates for affected sole traders and landlords, alongside annual finalisation. HMRC: using MTD for Income Tax.
Qualifying income in the reference year | Required start date, unless exempt |
Over £50,000 in 2024/25 | 6 April 2026 |
Over £30,000 in 2025/26 | 6 April 2027 |
Over £20,000 in 2026/27 | 6 April 2028 |
You still need to file the return for the tax year before you enter MTD. Someone using MTD from April 2026 therefore still needs to deal with their 2025/26 Self Assessment return. HMRC: MTD eligibility and start dates.
Qualifying income generally means combined gross self-employment and property income before expenses. Employment income and dividends do not count towards that threshold. For example, £34,000 trading income plus £19,000 rent in 2024/25 gives £53,000 qualifying income for the April 2026 entry test, subject to exemptions. HMRC: qualifying income.
Check your position alongside the annual return. Our Making Tax Digital support can help you prepare for the change.
For a standard 2025/26 Self Assessment return, late filing normally starts with a £100 penalty. Further charges can follow:
Late payment has separate penalties and interest. Late registration involves failure-to-notify rules, rather than an automatic £100 registration penalty. A reasonable excuse may support an appeal. The penalty schedule above concerns the standard 2025/26 annual return, not later MTD obligations. HMRC: Self Assessment penalties.
You can normally amend a return within twelve months of its statutory filing deadline. For a standard 2025/26 return, that usually means 31 January 2028. After the amendment window, you may need to write to HMRC; different procedures and time limits apply. HMRC: correcting a return.
Contact HMRC about a Time to Pay arrangement. Its online service checks eligibility; if you cannot arrange a plan online, contact HMRC directly. Approval depends on your circumstances, and interest may still apply.
A Budget Payment Plan is different: it helps eligible taxpayers pay towards a future bill. HMRC: payment plans.
A useful tax review asks whether the return reflects what actually happened during the year. Three checks deserve particular attention:
Income: reconcile the return with your records. Bank receipts can include transfers or loans, while receipts net of fees may understate gross sales.
Claims: retain your reasoning for mixed-use costs and unusual transactions. A receipt proves payment, not necessarily tax deductibility.
Payments: compare the annual calculation with HMRC’s statement, allowing for tax deducted, earlier payments and advances due.
A correct calculation can still rest on incomplete records. For example, a payment platform may deduct its fees before transferring money to your bank. Recording only that transfer can understate both sales and costs. Reconcile the platform statement with the bank receipts before completing the return.
An accurate Self Assessment tax return brings together your income, allowable claims and tax already paid. Preparing it early also gives you time to plan for payments on account and resolve questions before the deadline.
A straightforward return may be manageable yourself. Professional help becomes more valuable when you have several income sources, rental property, overseas income, disposals, incomplete records or uncertainty about reliefs.
Naail & Co Chartered Certified Accountants and Tax Advisors provides personal Self Assessment support. Tell us which tax year you need help with, your income sources and whether HMRC has contacted you. We can then discuss the scope of work and fees before you decide how to proceed.
Monday – Friday
9:00 am – 5:30 pm
A Self Assessment tax return is the information you submit to HMRC to report taxable income, gains and relevant tax reliefs for a tax year. HMRC uses it to establish the tax you owe or any repayment due. It commonly applies to sole traders, business partners and people with income that is not fully taxed through PAYE. The UK tax year runs from 6 April to 5 April. HMRC guidance.
You may still need a Self Assessment tax return if PAYE does not cover all your tax obligations. Rental income, self-employment, foreign income or taxable capital gains can create a reporting requirement. For example, an employee with gross sole-trader income above £1,000 will normally need to file, even if the business makes little profit. Being employed does not automatically exempt you, and being a company director does not automatically mean you must file. Check HMRC’s filing criteria.
You register for Self Assessment if required, access the appropriate filing service, enter your financial information and submit the completed return to HMRC. Gather your Unique Taxpayer Reference, employment documents, business records and details of other income and reliefs first. Check the calculation and save your submission confirmation. HMRC’s online service supports many returns, but some circumstances require commercial software. Submitting the return and paying the bill are separate steps. HMRC’s filing guidance.
The usual online filing and balancing-payment deadline is 31 January following the end of the tax year; paper returns are normally due by 31 October. If you need to tell HMRC that you must file for the first time, the usual notification deadline is 5 October after the tax year ends. Filing early gives you time to check the figures and budget without bringing forward the normal payment deadline. HMRC’s deadlines.
Yes, sole traders can deduct allowable business expenses when calculating taxable profit, subject to HMRC’s rules. These may include business insurance, qualifying travel and the business proportion of telephone costs. For example, if a phone is used 60% for business, only the eligible business share is deductible. Keep supporting records and exclude personal spending. You cannot claim both actual expenses and the £1,000 trading allowance against the same trading income. HMRC’s allowable expenses guidance.
Payments on account can make the January amount payable higher than the tax due for the year just completed. These are advance instalments towards your next tax bill, usually due on 31 January and 31 July. For example, a £4,000 relevant annual liability could mean a first January payment of £6,000, including a £2,000 advance instalment, if nothing has already been paid. Exceptions apply, including where the previous relevant bill was below £1,000. HMRC’s payments on account guidance.
Accountants’ fees depend on the complexity of your affairs, the quality of your records and the work included; there is no standard HMRC-set fee. A straightforward return generally involves less work than one covering several properties, overseas income or capital gains. Ask for a written quote confirming whether VAT, bookkeeping, tax calculations and advice are included. Naail & Co can discuss the scope of your return before quoting.
Yes, you can usually amend a Self Assessment tax return within 12 months of its statutory filing deadline. This allows you to correct omitted income, inaccurate figures or missed reliefs, although some claims have separate time limits. After the amendment window closes, you normally need to write to HMRC. Review errors promptly: additional tax may attract interest, while an accepted correction that reduces your liability may result in a repayment. HMRC’s amendment guidance.
A late Self Assessment tax return can trigger penalties even when no tax is payable. Under the traditional Self Assessment penalty rules, the initial late-filing penalty is £100, with further charges as the delay continues. Late payment can also attract interest and separate penalties. Submit outstanding returns promptly and contact HMRC if you cannot pay. Different penalty rules apply under Making Tax Digital, so check which regime covers your return. HMRC’s penalty guidance.
Making Tax Digital for Income Tax changes how affected sole traders and landlords keep records and report to HMRC. It requires compatible software, digital records, quarterly updates and an annual tax return. Your start date depends on qualifying gross self-employment and property income, with thresholds reducing as the scheme expands. Quarterly updates do not replace the annual return. Check your required start date and any exemption before choosing software or arranging accounting support. HMRC’s eligibility guidance and reporting requirements.
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