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The HMRC January 2026 Deadline: Your Last Traditional Self Assessment Before MTD For ITSA Changes Everything

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The HMRC January 2026 deadline is a pivotal moment for millions of self-employed individuals and landlords across the UK, marking the final major filing under the traditional Self Assessment (SA) system before the seismic shift of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) begins. This crucial date, January 31, 2026, is not just the standard deadline for filing your 2024/2025 tax return and paying the corresponding tax bill; it is the line in the sand that determines who will be mandated to comply with the new digital reporting regime starting just two months later. Failing to meet this deadline carries the usual financial penalties, but more importantly, it means missing a critical chance to assess your income and prepare for the digital future of UK taxation. The information available in December 2025 confirms that while the January 2026 deadline itself is for the familiar 2024/2025 tax year, its significance is amplified by the impending MTD for ITSA rollout. HMRC is urging taxpayers to file and pay early, not only to avoid late filing penalties but also to use the results of the 2024/25 return to understand their obligations under the new MTD rules. The clock is ticking for those with qualifying income over £50,000, as they will be the first wave required to comply with MTD for ITSA from April 2026.

The January 31, 2026 Deadline: What You Must File and Pay

The deadline of 31 January 2026 is the final date for two core obligations related to the 2024/2025 tax year (which ran from 6 April 2024 to 5 April 2025). Missing either of these will trigger immediate penalties from HMRC.

The Two Core Obligations

  • Online Self Assessment Tax Return Submission: You must submit your online tax return for the 2024/2025 tax year by 11:59 pm on 31 January 2026. This return summarises all your income, including self-employment, property rental, dividends, and other taxable sources.
  • Payment of Tax Bill: The deadline for paying any tax due for the 2024/2025 tax year is also 31 January 2026. This includes the balancing payment for the previous year.
  • First Payment on Account (POA): Crucially, the first Payment on Account for the *current* 2025/2026 tax year is also due on this date.

Late Filing Penalties: What Happens If You Miss It

The penalty regime for late filing remains strict and cumulative, acting as a powerful incentive for timely submission.
  • Immediate Penalty: A £100 penalty is charged if your return is one day late.
  • Three Months Late: After three months, daily penalties of £10 are applied, up to a maximum of £900.
  • Six Months Late: An additional penalty of 5% of the tax due or £300 (whichever is greater) is charged.
  • Twelve Months Late: Another 5% or £300 penalty is charged, and in some cases, a higher penalty of up to 100% of the tax due may be applied for deliberate non-compliance.
It is vital to remember that the 31 January 2026 deadline is non-negotiable, and the penalties for late payment also accrue interest, making early action the only financially sensible course.

The Critical Link to Making Tax Digital (MTD for ITSA)

The reason the January 2026 deadline is so significant is its direct connection to the start of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). This is the last traditional filing before the new digital era begins for the highest earners.

Who is Affected by the April 2026 MTD Start Date?

MTD for ITSA is set to begin on 6 April 2026 for a specific group of taxpayers.
  • The Threshold: The initial phase applies to sole traders and landlords whose gross income from their business or property exceeds £50,000 in the previous tax year.
  • The Pivot Year: The income HMRC will use to determine if you must comply from April 2026 is your 2024/2025 income, which you are filing by the January 2026 deadline. If your qualifying income for 2024/25 is over £50,000, you are mandated to join MTD from April 2026.
This means the Self Assessment return you submit by 31 January 2026 is the key document that places you into the first MTD cohort.

What MTD for ITSA Will Require

If your 2024/25 income places you over the £50,000 threshold, you must immediately begin preparing for the radical changes that MTD for ITSA will introduce.

1. Digital Record Keeping

You will no longer be able to use paper records or simple spreadsheets. You must keep digital records of all your business and property income and expenses. This requires using HMRC-compatible software.

2. Quarterly Updates (The Biggest Change)

Instead of one annual Self Assessment return, you will be required to submit quarterly summaries of your income and expenditure to HMRC.
  • Deadlines: These quarterly updates will have their own deadlines, such as 5 August, 5 November, 5 February, and 5 May.
  • Purpose: These updates allow HMRC to have a near real-time view of your tax position, helping to reduce errors and making tax payments more predictable.

3. End of Period Statement (EOPS) and Final Declaration

At the end of the tax year, you will submit an End of Period Statement (EOPS) to finalise your business income and expenses, followed by a Final Declaration to confirm all other income sources. This replaces the single annual Self Assessment form.

Preparing Now: Entities and Action Points for Compliance

For sole traders, small business owners, and landlords, the period between the January 2026 deadline and the April 2026 MTD start is critical for transition. Proactive preparation is the only way to avoid stress and potential penalties.

Key Entities and Action Points

The following entities and concepts are central to your preparation for the MTD for ITSA transition:
  • Compatible Software: Identify and purchase/subscribe to HMRC-recognised MTD software. Popular options include QuickBooks, Xero, and other accounting software providers that are MTD-compliant.
  • Digital Records: Start practicing digital record-keeping now. Get into the habit of logging all transactions electronically, as this will be mandatory.
  • Tax Year 2024/25: Ensure this year's SA return is accurate, as it is the benchmark for your MTD start date.
  • Qualifying Income: Understand how HMRC calculates your income for the £50,000 threshold. It generally includes gross income from all self-employment and property businesses.
  • Agent Authorisation: If you use an accountant, ensure they are fully prepared for MTD and have the necessary digital authorisation to file your quarterly updates on your behalf.
  • Penalties: Familiarise yourself with the new MTD penalty system, which will eventually replace the old SA penalty system for those mandated to join.

The Next Wave: The £30,000 and £20,000 Thresholds

While the focus is on the £50,000 threshold starting in April 2026, those with lower incomes must also prepare. The plan is for MTD for ITSA to extend to:
  • April 2027: Individuals with qualifying income over £30,000.
  • April 2028: Individuals with qualifying income over £20,000.
Even if you are not in the first wave, the January 2026 deadline should serve as a wake-up call to start digitising your records now. The transition is inevitable for most self-assessed taxpayers. In conclusion, the HMRC January 2026 deadline is far more than a routine tax date; it is the final curtain call for the traditional Self Assessment system for a significant portion of the UK's self-employed and landlord population. Meeting the 31 January 2026 deadline for your 2024/2025 return is essential for financial compliance and is the necessary first step in preparing for the mandatory digital reporting requirements of MTD for ITSA that will begin just weeks later. Do not delay your filing and use the outcome to launch your MTD transition strategy.
The HMRC January 2026 Deadline: Your Last Traditional Self Assessment Before MTD for ITSA Changes Everything
hmrc january 2026 deadline
hmrc january 2026 deadline

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