Over one million self-employed Brits will struggle to pay tax bill this week
With the HMRC self-assessment deadline less than a week away, more than a quarter (28%) of self-employed workers in the UK say they are likely to struggle to pay their tax bill by Friday.
In the survey of self-employed people, 42% reported that cash flow challenges had caused issues that impacted their ability to pay on time, either now or in previous tax years. Meanwhile, 16% say this is a problem they face every single year.
With over four million self-employed workers in the UK, the data suggests that more than a million people could find themselves unable to pay their tax bill by 31st January 2025, leaving them with additional fines.
Mike Parkes, Technical Director at Oldham-based GoSimpleTax, a self-assessment tax software firm which conducted the survey, commented: “For many self-employed workers, the January tax deadline can unfortunately add additional financial pressure during an already-challenging period. For some, this is an annual issue.
"This data shows how important it is to prepare well in advance, to avoid any nasty shocks when faced with hefty tax bills that need to be paid at short notice. The earlier a Self Assessment is completed, the more breathing space there is to ensure sufficient funds are available to pay the bill and avoid last-minute stress or financial penalties that add to the burden”
With just days to go until the 31st January deadline for submitting Self Assessments and paying tax bills, tax experts at GoSimpleTax are recommending that any self-employed workers who anticipate difficulties paying their tax bill should act quickly.
Parkes added: “The first step is to submit your Self Assessment return as soon as possible, to understand exactly how much tax is due to be paid as well as refunds that can be claimed. If you are worried that you may not be able to afford the tax bill, the next thing to do is to contact HMRC as soon as possible. It’s possible that you may be able to pay in instalments over a set period – but the earlier you arrange this, the better.
“Many hard-working self-employed people operate on tight budgets and irregular income, which makes cash flow management challenging. With over a million people in a similar situation, it’s important to remember you are not alone, and that tools and support is out there to ease the pressure.”