A Guide To Record-Keeping And Expenses For Self-Employed Sole Traders
Whether you’re new or not to self-employment, record-keeping might sound like hard work. And while that may be true, it does come with…
If you’re required to file a Self Assessment tax return for the 2024/25 tax year, the deadline to submit it online is 11:59pm on 31 January 2026.
If you’ve already filed, that’s one less thing to worry about. If you haven’t, there’s still time – but it’s worth acting soon to avoid penalties or late payment interest.
Key Self Assessment deadlines
For reference, these are the standard Self Assessment dates set by HMRC each year:
- Tax year covered: 6th April to 5th April (e.g. 6th April 2024 to 5th April 2025)
- Register for Self Assessment (if new): 5th October, following the end of the tax year in question
- Paper return deadline: 31st October
- Online return and payment deadline: 31st January
- Pay via your tax code: File by 30th December 2025 if you want HMRC to collect tax through your PAYE code the following year (if eligible)
For the 2024/25 tax year, the online filing deadline is 31st January 2026. For the following year, it will be 31st January 2027.
What if you miss the deadline?
HMRC may apply penalties, even if no tax is due. These could include:
- £100 for missing the deadline by even one day
- Daily fines of £10 (up to 90 days, maximum £900)
- A further £300 or 5% of unpaid tax at 6 months
- Another £300 or 5% at 12 months
- Additional charges and interest for unpaid tax
You may wish to check the most up-to-date penalty and interest rules on HMRC’s website.
Struggling to pay?
If you can’t pay your tax bill in full, HMRC may offer a Time to Pay arrangement, allowing you to pay in instalments depending on your situation. It’s worth contacting them as early as possible to explore your options.
Can penalties be cancelled?
HMRC may waive or reduce penalties if you have a reasonable excuse. These may include:
- Serious illness or medical emergency
- A recent bereavement
- Issues with HMRC’s online services
- Disruptions like fire, flood, or postal delays
Returns should usually be filed as soon as possible, with any supporting evidence provided.
What if this is your first time filing?
If 2024/25 is your first year needing to file, you would typically need to register with HMRC by 5th October 2025. Missing this deadline may result in a ‘failure to notify’ penalty if tax is due and not paid on time.
If you’re not sure whether you need to submit a return, HMRC’s check tool may help.
Planning ahead for 2025/26
If you’ll need to file a return for income earned between 6th April 2025 and 5th April 2026, you could begin preparing from 6th April 2026. Filing early may help you:
- Avoid last-minute pressure in January
- Identify missing paperwork ahead of time
- Understand your tax position earlier
- Spread out or prepare for any payment due
The online deadline for that tax year will be 31st January 2027.
Earning over £100k?
If your income exceeds £100,000, you may start to lose your personal allowance, resulting in an effective 60% tax rate on part of your income. This is sometimes called the ‘60% tax trap’.
It could be helpful to speak with a tax adviser about ways to reduce your adjusted net income – like through pension contributions or Gift Aid donations.
What about Making Tax Digital (MTD)?
HMRC’s Making Tax Digital programme for Income Tax won’t apply to most Self Assessment taxpayers until April 2026 at the earliest. However, if you’re already using MTD-compatible software or run a VAT-registered business, you may already be familiar with it.
Keep an eye on HMRC updates to stay informed about when these rules could apply to you.
Why your insurance matters at tax time
While your insurance cover doesn’t affect your tax return directly, many contractors, freelancers, and small business owners use the new year as an opportunity to review their business protection – whether that’s renewing contracts, switching from umbrella to limited, or preparing for new client engagements.
Kingsbridge offers a full Contractor Insurance package, including:
Reviewing your policy can help make sure your cover still aligns with how you’re working.
Disclaimer: This article is for general information only. Kingsbridge does not offer tax advice. You may wish to consult a qualified accountant or tax adviser for guidance specific to your circumstances.
