Freelancing gives you freedom.
Tax deadlines do not.
If you didn’t file or pay your Self Assessment by 31 January 2026, don’t panic. You are not the only one, and this is still very fixable.
What matters now is what you do in February.
Here’s how to reduce penalties, calm HMRC down, and set yourself up so this never happens again.
1. File Your Return ASAP
Penalties increase the longer a return is left outstanding.
Filing quickly shows HMRC you are taking responsibility, which can make a real difference if penalties are reviewed later.
Do this now:
- Submit the return, even if you can’t pay yet
- Make sure all income and expenses are included
- Don’t wait until you “feel ready”
2. Pay What You Can — Or Arrange a Payment Plan
You do not need to pay everything in one go.
HMRC allows instalment arrangements called a Time to Pay plan.
Do this now:
- Pay as much as you can
- Set up a payment plan for the rest
- Avoid ignoring the bill — that’s when interest and penalties grow fast
3. Check You Haven’t Overpaid by Missing Expenses
When people rush returns in January, they often forget legitimate expenses.
That means paying more tax than necessary.
Common missed expenses:
- Home office costs
- Software subscriptions
- Travel for work
- Professional fees
- Training related to your work
Good records reduce the risk of HMRC calling your return “careless”.
4. Understand Why This Happened (No Judgement)
For most freelancers, it’s not laziness.
It’s usually:
- Too many clients
- Too many income streams
- Cross-border work confusion
- Paperwork overwhelm
- Leaving it “for later”
February is the perfect time to fix the system, not just the return.
5. Put a Simple System in Place for 2026/27
This is where stress disappears.
Simple rules that work:
- Track income monthly
- Keep digital copies of receipts
- Set aside 25–30% for tax in a separate account
- Have “finance time” once a month
- Use bookkeeping software or a simple spreadsheet
January should be a formality, not a crisis.
6. Don’t Deal With HMRC Letters Alone
If you’ve already received a brown envelope, get advice early.
An accountant can often:
- Reduce or cancel penalties
- Show you took “reasonable care”
- Handle communication with HMRC
- Set up payment plans properly
Getting help early is far cheaper than fixing it later.
Final Word
Missing the Self Assessment deadline feels awful.
But February is actually the best time to sort it calmly and properly.
Most penalties grow because people delay again after January.
If you’re a freelancer in Newcastle or the North East and want jargon-free help, especially if you have multiple income streams or cross-border work, I can help you get back on track and set up a system that makes next year easy.
Contact us today