In this week’s Enews, there is news on the numbers missing the self assessment deadline for returns. We also look at the changes coming in with the next phase of Making Tax Digital and have the latest business confidence survey to update you on.
One million miss self assessment deadline
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 press release
Making Tax Digital for Income Tax biggest tax change since self assessment
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.’
Internet link: LITRG website
Business confidence jumps in January
The confidence of business leaders in both their own organisations and the wider UK economy rose markedly in January, according to data from the Institute of Directors (IoD).
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, jumped to -48 in January 2026, from -66 in December 2025.
Business leader confidence in their own organisations also jumped, to +14 in January from -4 in December.
Anna Leach, Chief Economist at the IoD, said:
‘After record weakness last year, January saw a welcome – and fairly chunky – rise in the confidence of business leaders. There’s been an improvement across-the-board in the economic measures too, with the strongest improvements in revenue expectations and investment plans.
‘The year has begun with a high level of policy activity, including a number of packages designed to support businesses – from backing scale-ups and funding for export growth, to business rates relief for pubs and live music venues.
‘But these welcome moves continue to clash with very significant rises in the cost of doing business in the UK. There remains a need to ensure that the full weight of government policy is focused on driving up growth. In particular, we look for further progress in designing-out the risks to employment from the Employment Rights Act, alongside faster action to remove regulatory blockers to growth.’
Internet link: IoD website
