Less Than Two Weeks to Go: What You Need to Know About the Self Assessment Deadline

With less than two weeks left until the Self Assessment deadline, now is the time to act. If you have not yet filed your tax return, it is important to get this done as soon as possible to avoid unnecessary stress, late filing penalties and interest charges.

The deadline for submitting your online Self Assessment tax return and paying any tax owed is 31 January.

Missing this date can lead to automatic fines, even if you only file one day late.

What about payments on account?

If you are self‑employed and your last tax bill was more than £1,000, HMRC will usually ask you to make payments on account towards next year’s tax bill.

These are advance payments and they are not optional if they apply to you.

Payments on account are made in two instalments:

• First payment: 31 January

• Second payment: 31 July

Each payment is usually 50% of your previous year’s tax bill.

Can you reduce your payments on account?

Yes, but only if you have a valid reason.

Common reasons include:

• You have stopped trading

• You have closed your business

• You have incorporated your business

• Your profits have reduced significantly

You must be able to justify the reduction with calculations and evidence.

Why you need to be careful

If you reduce your payments on account without a good reason, HMRC will treat this as underpaying tax.

When you submit your next tax return, they will review what you should have paid.

If your payments were too low:

• You will have to pay the difference in one go

• HMRC will charge interest from 31 January

• You may also face penalties if HMRC believes the reduction was careless or deliberate

This can quickly become expensive.

Before reducing your payments, make sure:

• You have a genuine reason

• You have calculations to support your decision

• You understand the risks involved

If you are unsure, it is always better to get professional advice before making changes.