New year, tight deadline. January 31st is the UK’s Self Assessment tax return deadline – and if you’re a busy small business owner or sole trader, it’s coming up fast. Missing the deadline isn’t an option unless you fancy a £100 late filing penalty (and more penalties as time goes on). The good news? There’s still time to get your tax return sorted if you act now. This guide will help you survive the last-minute rush and avoid being one of the 1.1 million taxpayers who missed the deadline last year. (source: icaew.com)

Are you staring at a pile of receipts and invoices from the last year, unsure how to start your tax return? You’re not alone – January panic is common. Many small business owners procrastinate on their Self Assessment. In fact, HMRC reported that over 732,000 people filed on deadline day itself last year. Filing at the 11th hour is stressful and risky. The problem is clear: the clock is ticking, and the task isn’t done.

Let’s talk consequences. Missing the 31st January deadline means an automatic £100 fine even if you owe no tax. Wait another 3 months and daily penalties of £10 kick in. Ouch. Plus, if you owe tax and miss payment, interest and additional penalties will pile on. Imagine handing over hundreds of pounds to HMRC just because the return was late. It’s not just about money either – the stress of knowing you’re late, or the dread of a brown envelope from HMRC, can hang over you and your business. Nobody needs that kind of anxiety so soon in the new year.

Now picture this: it’s mid-January and instead of panicking, you’ve filed your return and can focus on running your business. Let’s make that happen. Here’s your last-minute Self Assessment survival plan:

· Get your paperwork in order – today. Block out a couple of hours to gather everything: invoices, expense receipts, bank statements, loan interest, payroll info if you have staff, etc. A tidy digital folder will save you from scrambling. Run reports for the tax year from your accounting software (income, expenses, profit).

· Remember allowable expenses. Don’t pay more tax than you should! Common allowable expenses for sole traders include things like a portion of your home office costs, mileage if you use your car for work, professional subscriptions, business insurance, and office supplies. Take a moment to recall any costs you incurred wholly for your business – they can reduce your taxable profit. Not sure what’s claimable? HMRC’s website has an A–Z of expenses – worth a look so you don’t overlook anything.

· File online ASAP. If you’ve never filed online before, you’ll need to activate your HMRC online account – this involves a code by post, which at this stage you hopefully have, or you’re already set up. Assuming you’re registered, log in at the HMRC Self Assessment portal and follow the steps. It’s mostly form-filling numbers from your records. Pro tip: Do it during off-peak hours (early morning or late evening) to avoid any website slowness as the deadline nears – HMRC’s site can get bogged down with traffic in late January.

· Double-check before hitting submit. Mistakes can cost money or trigger an HMRC inquiry. Common things to review: Have you included all your income streams? (Don’t forget any side gigs or rental income.) Claimed all your expenses? Entered figures in the right boxes? If something doesn’t apply, leave it blank. Use HMRC’s built-in calculator to see your tax bill estimate – does it roughly match your expectations? If something looks way off, investigate before submitting.

· Don’t forget payment. Filing is step one; paying any tax owed is step two, also due by 31 Jan. After filing, you’ll see your bill. Ensure you pay it (or at least have a plan to pay). HMRC gives multiple payment options – online banking, Direct Debit, card payment. Choose one and do it on time to avoid late payment penalties. If the amount is more than you can handle in one go, contact HMRC about a “Time to Pay” arrangement – in many cases they’ll let you spread payments over a few months. The key is to set that up before you default on the payment.

The finish line is in sight – you can do this. Set aside distractions for a day and complete your tax return. If you’re completely lost or drowning in numbers, reach out for help. A bookkeeper or accountant can assist (though hurry!). In fact, involving a professional might save you more in taxes than their fee, by uncovering deductible expenses or fixing errors. Most importantly, don’t miss the deadline. Imagine the relief on February 1st when you wake up knowing your taxes are done – no fines, no stress, just a fresh start to 2026. That peace of mind is worth a few hours of effort now. File your return, pay your bill, and then treat yourself – you’ve earned it. Here’s to a worry-free end of January and no unwanted HMRC surprises!