Last updated: 14 October 2026
How should self-employed people prepare for the 31 January tax return deadline?
If you’re self-employed, your online return for 2025/26 (the year to 5 April 2026) must be filed by 31 January 2027, and any tax owed paid by the same date. That payment usually includes the balance for 2025/26 and the first payment on account for 2026/27. Start early: gather your income and expense records, check which expenses you can claim, and work out your tax so the bill isn’t a surprise. A late return costs at least £100, even if you owe nothing.
Your checklist
- Total your sales or fees for the year, including cash and card payments.
2. List allowable expenses, or decide whether the £1,000 trading allowance is better.
3. Add any other income: employment, rent, dividends, interest and pensions.
4. Claim capital allowances on equipment and vehicles.
5. Include any pension contributions and Gift Aid donations.
6. Check your payments on account from last year.
7. File online and pay, or set up a payment plan.
What you’ll pay
| Tax | 2025/26 rate |
| Income tax | 20%, 40% and 45% above the £12,570 Personal Allowance |
| Class 4 NIC | 6% on profits between £12,570 and £50,270, 2% above |
| Class 2 NIC | No longer compulsory; voluntary if profits are below £6,845 |
Payments on account
If your last tax bill was over £1,000 and less than 80% was collected at source, you’ll pay half next year’s estimated bill on 31 January and half on 31 July. If your profits have fallen, you can reduce them, but if you reduce them too far, interest is charged on the shortfall.
Example
Rosa, a self-employed hairdresser, made a £32,000 profit in 2025/26. Her income tax is £3,886 (20% of £19,430) and Class 4 NIC is £1,166 (6% of £19,430), a total of £5,052. She hadn’t made payments on account before, so on 31 January 2027 she pays £5,052 plus a first payment on account of £2,526 for 2026/27, £7,578 in all. On 31 July 2027, she pays another £2,526.
If you can’t pay in full
- Use HMRC’s online Time to Pay service for debts up to £30,000, if you’ve filed your return
- Pay what you can now to reduce interest at 7.75%
- Late payment penalties of 5% apply at 30 days, 6 months and 12 months
Common mistakes
- Forgetting income from platforms such as Etsy or Airbnb, which now report to HMRC
- Claiming personal costs, such as ordinary clothing
- Missing use of home or mileage allowances
- Not keeping receipts for 5 years after the 31 January deadline
Budget for next year
Set aside a fixed share of each payment you receive, such as 25%, in a separate savings account. HMRC’s budget payment plan also lets you pay towards your next bill by regular direct debit.
Frequently asked questions
Can I file before the year ends?
No, but you can file from 6 April after the year ends.
Can HMRC collect through my tax code?
Yes, if you’re also employed, you owe less than £3,000 and you file by 30 December.
Do I need an accountant?
It’s not required, but helps with planning.
What if I’ve missed the deadline?
File as soon as possible to limit penalties.
Related: registering for Self Assessment, working out your taxable profits and using business losses.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with self-employed tax returns. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
