As the new year gets into full swing, the focus for many contractors is firmly back on work. However, one critical date is approaching that cannot be ignored: the 31st January Self-Assessment tax return deadline.
At Champion, we understand that our contractors are the heartbeat of the contingent workforce. Whether you've spent the festive break recharging or are already "full steam ahead" with new assignments, ensuring your tax affairs are in order is essential for a stress-free 2026.
The Real Cost of Missing the Deadline
The 31st of January isn't just a date in the diary; it's a strict cutoff for HMRC.
Failing to submit your return on time will result in automatic fines and financial penalties that quickly escalate:
- Immediate Fines: An initial £100 fixed penalty is applied the moment a return is late, even if you owe no tax.
- Daily Penalties: If the return is over three months late, HMRC can charge £10 per day, up to a maximum of £900.
- Escalating Charges: After six and twelve months, additional penalties of £300 or 5% of the tax due (whichever is higher) are applied.
- Interest: Daily interest is charged on any unpaid tax from the deadline until the balance is cleared.
How Champion Supports You
Our team is dedicated to providing the support and guidance you need to stay compliant and avoid penalties. If required, Champion can help you file your tax returns correctly and on time.
Content, loyal contractors are the foundation of a stable supply chain, leading to increased revenue and stronger reputations for everyone involved. A contractor who feels valued and supported not only performs better but stays longer, which is vital for building lasting professional relationships.
Act Now
If you have not yet completed your tax return, now is the time to act. For our expert guidance and support on filing your tax returns, contact us at 0161 703 2549 or email info@championcontractors.co.uk.