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The 5 Critical Things You Must Do Before The HMRC January 2026 Deadline

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The clock is ticking on the UK’s traditional tax system. As of this current date, December 19, 2025, the looming 31 January 2026 deadline for the Self Assessment tax return is not just another annual filing; it represents the final major submission before a monumental shift in how millions of sole traders and landlords interact with HMRC. This deadline covers the 2024–2025 tax year and is your last chance to complete a full-year return under the familiar, legacy system before the Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) revolution officially begins in April 2026. Failure to act now could lead to significant penalties and a chaotic transition to the new digital regime.

For those earning over £50,000, the January 2026 deadline is the final checkpoint before mandatory digital record-keeping and quarterly reporting take effect. The transition from one annual return to four quarterly updates plus a Final Declaration will fundamentally change your accounting process. Understanding the specific requirements for this final traditional submission and preparing for the MTD rollout is paramount to maintaining compliance and avoiding the steep learning curve under pressure.

The 31 January 2026 Deadline: The Final Traditional Self Assessment

The 31 January 2026 deadline is the cut-off point for two crucial actions relating to your 2024–2025 tax affairs: the online submission of your Self Assessment tax return and the payment of any outstanding tax bill. This is a standard deadline, but its proximity to the MTD start date gives it unprecedented significance.

Key Deadlines for the 2024–2025 Tax Year

  • 31 October 2025: Deadline for paper Self Assessment tax returns (already passed).
  • 30 December 2025: Deadline for filing an online return if you want HMRC to collect tax through your PAYE tax code (if you owe less than £3,000).
  • 31 January 2026: Final deadline for online submission of the 2024–2025 Self Assessment tax return.
  • 31 January 2026: Final deadline for paying the tax owed for the 2024–2025 tax year. This also includes the first Payment on Account for the 2025–2026 tax year.

Missing this deadline will immediately trigger a late filing penalty, starting at £100, even if you have no tax to pay. Further penalties accrue the longer the return remains unfiled and the tax remains unpaid. With the complexity of the MTD changes on the horizon, getting this final traditional return completed cleanly is essential to prevent a messy start to the new regime.

The MTD for ITSA Revolution: Why January 2026 is Your Prep Date

While the January 2026 deadline is for the old system, the real urgency comes from the major changes starting just a few months later. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is set to transform how sole traders and landlords report their income. The new mandatory start dates are staggered based on income:

  • April 2026: MTD for ITSA starts for those with business or property income over £50,000.
  • April 2027: MTD for ITSA starts for those with business or property income over £30,000.

The January 2026 deadline is the last chance for the £50,000+ income group to use the old, annual system before they are legally required to switch to digital reporting. This transition is not trivial; it requires a fundamental change in record-keeping and reporting frequency.

The 3 Major Changes Under Making Tax Digital

Taxpayers who will be subject to MTD must prepare for three core shifts that will replace the single annual Self Assessment return:

1. Digital Record Keeping: Paper records are no longer sufficient. All business and property income and expenses must be recorded and stored digitally, typically using HMRC-recognised MTD-compatible software. This is the foundation of the new system.

2. Quarterly Updates: Instead of one annual submission, you will need to submit a summary of your income and expenditure to HMRC every three months. These "Quarterly Updates" are not full returns but provide HMRC with a near real-time view of your tax position. This is a significant increase in compliance frequency.

3. The Final Declaration: At the end of the tax year, you will submit a "Final Declaration" (formerly the Self Assessment return). This is where you finalise your tax position, claim any reliefs or allowances, and confirm the accuracy of your quarterly updates.

5 Urgent Steps to Take Before January 2026

For individuals and businesses approaching the £50,000 income threshold, the time between now and the January 2026 deadline is crucial for preparation. Use this period to finalise your 2024–2025 return and set up the necessary infrastructure for MTD.

1. Complete Your 2024–2025 Self Assessment NOW: Do not wait until the last week of January 2026. File your return for the 2024–2025 tax year early. This frees up mental bandwidth and time to focus on the MTD transition, which is far more complex than the annual return.

2. Assess Your MTD Readiness: Determine if your business or rental income will exceed the £50,000 threshold for the 2025–2026 tax year. If it will, you must start using MTD-compatible software from April 2026. If you're near the threshold, start planning for the change now.

3. Choose and Implement MTD-Compatible Software: The single most important step is selecting an HMRC-approved software package. This software will be used for your digital record keeping and for submitting the new Quarterly Updates. Waiting until April 2026 to choose and learn the software is a recipe for stress and potential penalties.

4. Digitize Your Current Records: Even if you haven't started MTD yet, begin moving your current business records (invoices, receipts, bank statements) onto a digital platform. Get into the habit of digital record keeping immediately. This practice will make the April 2026 transition seamless.

5. Review Your Payment on Account: When you file your 2024–2025 return by January 2026, you will also be asked to pay your first Payment on Account for the 2025–2026 tax year. Ensure you budget for this payment, as it represents a significant portion of your estimated tax liability for the following year. If your income has dropped, you can apply to reduce your Payments on Account.

The HMRC January 2026 deadline marks the end of an era. It’s not just a date for filing; it’s the final countdown to a mandatory digital switch for millions of taxpayers. By tackling your 2024–2025 Self Assessment early and immediately beginning your MTD preparation, you can navigate this major tax change with confidence and avoid severe late filing and non-compliance penalties.

The 5 Critical Things You Must Do Before the HMRC January 2026 Deadline
hmrc january 2026 deadline
hmrc january 2026 deadline

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