UK TAX DEADLINE FOR SOLE TRADERS - WHAT TO DO IF YOU CAN'T PAY ON TIME...
For sole traders, company director (if you file a self-assessment, landlord o or you have an additional untaxed income across the UK, the annual Self Assessment tax return deadline is one of the most important dates in the financial calendar. If you earned untaxed income through self-employment during the tax year (running from 6 April to 5 April), you must submit your return and pay any tax due by midnight on 31 January. This is true whether you work freelance, run your own small business, or earn income outside a traditional PAYE job.
Key Deadlines Sole Traders Need to Know
Here are the essential UK tax dates for sole traders:
5 October – Register for Self Assessment if it’s your first year filing.
31 October – Deadline for paper tax returns.
31 January – Online return deadline and the date you must pay tax owed.
31 July – Second payment on account (if applicable).
Failing to meet the January deadline means HM Revenue & Customs (HMRC) can charge penalties instantly, starting with an automatic £100 fine even if you don’t owe tax. Additional daily and larger penalties can follow if you remain late.
What Happens If You Can’t Pay by 31 January
Missing the payment deadline doesn’t just risk a fine – interest will also start accruing on your outstanding tax. However, UK tax rules do offer avenues to manage the situation if you can’t pay on time.
Here’s what you should do:
Submit your return on time anyway – This avoids late filing penalties, even if you can’t pay the bill yet.
Contact HMRC early – Call HMRC or use their online services before the deadline if you know you’ll struggle to pay. Early contact improves your chances of a manageable solution.
Arrange a “Time to Pay” plan – HMRC may agree a payment plan so you can spread the cost in affordable instalments.
Avoid high-interest loans – Using payday loans or credit cards to pay your tax can trap you in costly debt – it’s usually better to negotiate with HMRC
Final Tips
Preparing well before January makes a huge difference. Start gathering income records early, estimate your tax bill so you have funds ready, and consider professional help if your situation is complicated. Meeting the UK Self Assessment deadline and managing payments responsibly keeps your business compliant and avoids unnecessary stress.
