28K Freelancers Danger £100 Fines 

With the upcoming “dreadline” for Self-Evaluation Tax Returns simply two days away, new information has revealed that over 28,000 are liable to being hit with £100 fines for late filings.

Whereas the closing date for on-line filings isn’t till January 2026, the October thirty first deadline usually includes a frenzy of late paper filers — although that is one thing Making Tax Digital (MTD) goals to remove as soon as it turns into necessary from April 2026.

Nonetheless, regardless of the UK authorities’s shift towards digital techniques, many freelancers and small enterprise homeowners are nonetheless anticipated to overlook the deadline this 12 months, in keeping with analysis by NerdWallet UK. 

How many individuals are anticipated to overlook the deadline?

Checking out taxes is hectic sufficient with out the burden of being fined by HMRC.

But, information by NerdWallet UK predicts that 28,784 enterprise homeowners and freelancers will miss the paper submission deadline this week, based mostly on 9.46% folks lacking it final 12 months.

The implications of lacking the submitting deadline are an automated penalty of £100 from HMRC, even should you don’t owe any tax. If the return hasn’t been filed inside three months of the deadline, a further £10 penalty is added each day, with a most £900 cost.

Why are so many individuals lacking the deadline?

Regardless of the rise of digital instruments and accounting software program, a stunning variety of founders proceed to juggle spreadsheets, receipts, and deadlines on their very own.

NerdWallet UK’s analysis reveals that 33% of enterprise homeowners nonetheless handle their funds manually, with 27% doing so with out assist from an accountant. 

But additional information means that founders are combating monetary illiteracy. A survey by accounting software program firm Xero revealed that 55% of SMEs admit to avoiding monetary administration. 

It additionally discovered that one in ten of the UK’s smallest companies (these with 9 workers or fewer) imagine they don’t must declare all of their taxable earnings to HMRC. 

The lack of know-how round tax bands amongst freelancers is one other seemingly purpose many individuals miss tax deadlines altogether. Almost half of sole merchants additionally aren’t ready for MTD, regardless of the initiative changing into necessary for self-employed earnings from April 2026.

How can freelancers keep away from getting fined?

The shortage of economic literacy amongst founders has inevitably led to stunted progress and monetary losses.

NerdWallet UK reported that UK enterprise homeowners are spending a mean of seven hours on monetary administration duties per week — totalling a mean of £17,917 in misplaced earnings yearly.

An additional £100 will solely add to this monetary burden, however there are a number of methods founders can keep away from the penalty.

First, it’s essential to recollect necessary deadlines for submitting your tax returns. Even simply one thing so simple as setting reminders or making a notice in your calendar could make it simpler to remain on observe and keep away from last-minute panic. For those who do miss the paper deadline, collect all of the related paperwork and file on-line as quickly as potential. 

Subsequent, a very good accounting software program could make managing your funds a lot simpler and extra correct because it automates repetitive duties (e.g. invoicing), provides you real-time insights into money stream and spending, and allows you to observe your funds all year long.

Alternatively, hiring an accountant also can take weight off your shoulders, as they know the ins and outs of tax guidelines, will help you keep away from errors, and will help you get monetary savings as properly. In any case, 83% of SMEs say that their accountant has helped scale back the influence of inflation on their enterprise, so it’s positively well worth the funding in case you have the finances for it.

And keep in mind, you’ll be able to at all times contact HMRC in case you have questions in regards to the course of or points with funds. That approach, they’ll concentrate on your state of affairs and shouldn’t impose added fines.