An estimated one million taxpayers missed the self assessment deadline for the 2024/25 tax year, according to HMRC.

Over 11.48 million taxpayers filed their self assessment tax returns before midnight on 31 January.

However, more than 12 million self assessment taxpayers were expected to file a tax return and pay any tax owed by the deadline.

HMRC says that anyone who needs to file a return and missed the deadline should meet their tax obligations as soon as possible, as late filing and late payment penalties are charged.

The tax authority said that 97.25% of tax returns were filed online with 475,722 taxpayers waiting until the final day to file their return.

On 31 January, 27,456 people submitted their returns in the final hour while the busiest hour for submitting a return was 17:00 to 17:59, when 32,982 people filed.

HMRC advisers handled 5,409 webchats and 10,483 calls to the helplines which, unusually, were opened on a Saturday to provide extra support to taxpayers on deadline day.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘Thank you to the millions of people and agents who filed their self assessment tax return and paid any tax owed by 31 January.

‘HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs.’

Internet link: HMRC

The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.

Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.

Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.

The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your self assessment payment.’

Internet link: HMRC

The introduction of Making Tax Digital (MTD) for Income Tax this April will be the biggest change to the UK’s tax system since self assessment, says the Low Incomes Tax Reform Group (LITRG).

From 6th April 2026, taxpayers with more than £50,000 of gross income from self-employment and/or rental income in the 2024/25 tax year will need to comply with the new rules from that date.

Unless they are exempt, taxpayers who meet the income threshold will be required to follow these new rules, which will include keeping digital records, submitting quarterly updates of their income and expenses, and filing an annual tax return using commercial software.

According to HMRC’s data, more than 200,000 unrepresented taxpayers will be required to follow the new rules.

The LITRG has published new guidance to help taxpayers navigate the change.

Victoria Todd, Head of LITRG, said:

‘MTD is the biggest tax change since self assessment and with just over two months to go, time is running out to get ready.

‘Many taxpayers will have the support of a tax adviser or accountant to guide them through the process. But for those who can’t afford professional tax advice, the new rules may seem confusing and the requirements daunting.

‘We want to make it as easy as possible for taxpayers to understand whether the rules apply to them and what they need to do if that is the case.’

Chancellor Rachel Reeves insisted she has the ‘right economic plan’ for the UK in her Spring Forecast Statement announcement.

Ms Reeves acknowledged the economic uncertainty caused by war in the Middle East and pledged to chart a course through the turbulence.

The Chancellor’s speech focused on economic growth, the cost of living and public borrowing.

The Office for Budget Responsibility (OBR) cut its growth forecast for this year to 1.1% from 1.4%. However, it said the economy will grow faster in 2027 and 2028.

The OBR’s forecast shows GDP per person is now set to grow more than was expected in the Autumn Budget, with growth of 5.6% over the course of this Parliament.

In addition, Ms Reeves said she was cutting the cost of living, including reducing people’s energy bills by £150 and freezing rail fares.

The OBR’s forecast shows inflation, borrowing and debt interest are falling, whilst investment is rising.

The Chancellor also said she has cut public borrowing, which the OBR said is down by nearly £18 billion compared to the autumn, with borrowing this year set to be the lowest in six years and falling below the G7 average.

The Chancellor concluded:

‘My plan is the right one. I am in no doubt about how great the rewards can be if we stay the course. The forecasts today confirm that the choices this government has made are the right ones.

‘Stability in our public finances, interest rates and inflation falling, living standards rising, more children lifted out of poverty, more appointments in our NHS, more investment in our infrastructure, a growing economy and more money in the pockets of working people.’

Internet link: GOV.UK

Despite falling behind its peers the UK economy could be on the brink of a turnaround so the government must ramp up rather than run-down its growth strategy, says the Resolution Foundation.

A report by the think tank warns that the UK’s poor post-financial crisis economic performance has continued well into the 2020s. Its GDP per head is now languishing 15% behind its former peers, including France, Germany and Canada.

There are signs that the UK economy may be turning a corner however, with productivity growing by 3.4% over the past 18 months.

The report says the government’s three-pronged strategy of restoring stability, increasing investment and reforming the economy is the right one for the challenges Britain faces.

Greg Thwaites, Research Director at the Resolution Foundation, said:

‘There’s lots to welcome in the government’s economic growth strategy. But it has spent much of the past 18 months undermining that strategy with policy U-turns, kite-flying tax ideas and timidity in areas like trade where it needs to be bold.

‘With signs that productivity may be turning a corner, the government must capitalise by ramping up its plans. It should redouble efforts to unblock housebuilding in major cities, focus job support for young and older workers, and decide whether to bite the bullet and reverse some of the damage from Brexit.’