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5 Critical HMRC January 2026 Deadlines UK Taxpayers Must Know Now

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As the calendar turns to late 2025, the critical HMRC January 2026 deadline is looming, a date that marks a pivotal moment for millions of UK sole traders, landlords, and individuals who file a Self Assessment tax return. This period is not just about the annual tax bill; it serves as a crucial, final checkpoint before the monumental shift to Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) begins in April 2026.

The information below is current as of December 2025 and outlines the two primary deadlines you must be aware of and the urgent steps required to ensure compliance, avoid late filing penalties, and prepare your business for the digital future of UK tax.

The Two Critical HMRC January 2026 Deadlines Explained

While the term "January 2026 deadline" is often used singularly, it encompasses two distinct, high-stakes requirements that affect a vast number of UK taxpayers. Missing either of these can result in immediate financial penalties and complicate your transition to the new digital tax system.

1. The Self Assessment Filing and Payment Deadline (31 January 2026)

The most immediate and widely known deadline is for the traditional Self Assessment tax return. This date is non-negotiable for anyone who needs to file a return for the 2024–2025 tax year.

  • What is it? The deadline to file your Self Assessment tax return online and pay any tax owed for the tax year running from 6 April 2024 to 5 April 2025.
  • The Date: 11:59 pm on 31 January 2026.
  • Who is Affected? Sole traders, business partners, landlords, individuals with significant investment income, those claiming Child Benefit with high income, and anyone else required to complete a Self Assessment.

Failing to submit your online tax return by this date will automatically trigger an initial late filing penalty of £100, even if you have no tax to pay or have already paid it. Further penalties accrue the longer you delay.

2. The MTD for ITSA Baseline Deadline (31 January 2026)

This is the less obvious but arguably more important deadline for future compliance. The information submitted in your 2024/25 Self Assessment return will directly determine if you are mandated to join Making Tax Digital for ITSA when it commences in April 2026.

  • What is it? The gross income figure reported on this return is the threshold test for MTD.
  • The Date: The Self Assessment filed by 31 January 2026 uses the 2024/25 income figures.
  • Who is Affected? Sole traders and landlords whose gross income (from all self-employment and property sources) exceeded £50,000 in the 2024/25 tax year must comply with MTD for ITSA from 6 April 2026.

Effectively, the January 2026 deadline is your last chance to operate under the old system before the mandatory digital record-keeping and quarterly reporting requirements of MTD for ITSA kick in for high-income taxpayers.

Preparing for the Digital Revolution: Making Tax Digital (MTD for ITSA)

The primary reason the January 2026 deadline carries so much weight is its proximity to the MTD for ITSA launch. This is the biggest shake-up of the UK tax system in decades, fundamentally replacing the annual tax return with digital record-keeping and regular quarterly updates.

Key MTD for ITSA Entities and Start Dates

The introduction of MTD for ITSA is being phased in based on a taxpayer's gross income threshold:

Phase 1: High-Income Taxpayers (£50,000+ Gross Income)

  • Start Date: 6 April 2026.
  • Affected Entities: Sole traders and landlords with a combined annual gross income from business and/or property over £50,000.
  • Requirement: They must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC.

Phase 2: Mid-Income Taxpayers (£30,000+ Gross Income)

  • Start Date: 6 April 2027.
  • Affected Entities: Sole traders and landlords with a combined annual gross income from business and/or property over £30,000.

The 2024/25 tax year return (due January 2026) is the final year of filing under the old rules for those entering MTD in April 2026. Therefore, using this time to select and implement MTD-compatible software is essential.

What MTD for ITSA Requires

For those who fall above the £50,000 threshold, the new system demands a complete change in how records are kept and reported. It moves away from the annual scramble to a continuous digital process. The core requirements include:

  • Digital Record Keeping: All business and property income and expenses must be recorded and stored digitally using HMRC-recognised software.
  • Quarterly Updates: Summary figures of income and expenditure must be submitted to HMRC every three months (four times per tax year).
  • End of Period Statement (EOPS): An annual declaration confirming the final profit/loss figures, replacing the current Self Assessment return.
  • Final Declaration: A final tax liability declaration must be submitted by 31 January following the end of the tax year.

4 Crucial Action Points to Take Before January 2026

To navigate the dual pressures of the annual deadline and the impending digital mandate, taxpayers must take proactive steps now. This preparation will mitigate the risk of penalties and ensure a smooth transition to MTD.

1. Organise Your 2024/25 Records Immediately

Do not wait until January. Gather all your financial documents for the 2024/25 tax year, including invoices, receipts, bank statements, and any records of capital gains or investment income. Early preparation allows time to identify and claim all eligible tax reliefs and expenses.

2. Review Your MTD for ITSA Threshold

Calculate your total gross income for the 2024/25 tax year (the return due in January 2026). If the combined income from your sole trade and/or property rental exceeds £50,000, you are mandated to join MTD in April 2026. This review is critical for future planning.

3. Explore MTD-Compatible Software

If your income is over the threshold, your current spreadsheet or paper-based system will not be compliant from April 2026. Use the time before the January deadline to research and select an approved accounting software package (like QuickBooks, Xero, or FreeAgent). Getting comfortable with the software now will ease the transition.

4. Plan for Your Tax Payment and Seek Help

If you anticipate difficulty in paying your tax bill by 31 January 2026, contact HMRC as early as possible to discuss a ‘Time to Pay’ arrangement. This agreement allows you to spread the cost over several months and can prevent late payment penalties and interest charges. Additionally, be vigilant against the surge in HMRC Self Assessment scams that typically occur in the lead-up to the deadline. Never provide personal or financial details in response to unsolicited calls, texts, or emails.

Beyond ITSA: Other January 2026 Tax Developments

While Self Assessment and MTD dominate the conversation, the January 2026 period also sees other important developments:

  • Digital Assets Tax Reporting: New UK tax rules requiring digital asset traders to enforce personal data reporting to HMRC are set to take effect from January 2026 for compliance purposes.
  • PAYE/CIS Payments: The deadline for employers to pay PAYE, National Insurance Contributions (NIC), and Construction Industry Scheme (CIS) liabilities for the month ended 5 January 2026 is 22 January 2026 (or 19 January if paying by post).

The January 2026 deadline is a pivotal moment that closes one chapter (the old annual tax return system) and opens another (the digital MTD era). Proactive planning now, especially regarding MTD compliance, is the only way to avoid future financial penalties and ensure a seamless transition into the UK's modernised tax landscape.

5 Critical HMRC January 2026 Deadlines UK Taxpayers Must Know Now
hmrc january 2026 deadline
hmrc january 2026 deadline

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