Taxi drivers and other self-employed workers warned of £100 penalty as tax deadline looms
- Perry Richardson
- 2 minutes ago
- 3 min read
Taxi drivers and other self employed workers have been warned they face an automatic £100 fine if they miss the fast approaching Self Assessment tax deadline, with just days remaining before returns for the 2024 to 2025 tax year must be filed.
HM Revenue and Customs said 8.6 million people have already submitted their returns, but around 3.3 million taxpayers have yet to file ahead of the 31 January cut off. Last year, more than 11.5 million people filed by the deadline.
The warning is particularly relevant to taxi and private hire drivers, the vast majority of whom operate as sole traders and are required to submit an annual Self Assessment return covering income, expenses and tax owed. Missing the deadline triggers an automatic £100 fixed penalty, even if there is no tax to pay or if any tax due is settled on time.
HMRC said those who delay beyond the deadline could see penalties escalate quickly. After three months, daily fines of £10 per day apply for up to 90 days, adding as much as £900. After six months, a further penalty of 5 percent of the tax due or £300, whichever is greater, is charged, with another 5 percent or £300 applied after 12 months.
HMRC urges self employed workers to file before 31 January as millions of returns remain outstanding
Separate penalties apply for late payment of tax owed. HMRC said unpaid tax attracts penalties of 5 percent at 30 days, six months and 12 months, alongside interest charged on the outstanding balance. These charges are in addition to any late filing penalties.
This year’s deadline falls on a Saturday, limiting access to telephone support. HMRC’s phone lines are open from 8am to 6pm Monday to Friday but will close on Friday 30 January and reopen on Monday 2 February, after the deadline has passed. Webchat support will be available through the Online Services Helpdesk on Saturday 31 January.
HMRC is encouraging those who have not yet started their return to use online support tools available on GOV.UK, including step by step guidance, webinars and video explainers. Its digital services remain available around the clock, and once a return is submitted, tax can be paid using the HMRC app, which the department says takes less than a minute.
The tax authority said it will consider appeals where customers have a reasonable excuse for missing the deadline, although it did not specify what circumstances would typically qualify.
Beyond this year’s filing deadline, HMRC also used the reminder to flag significant upcoming changes for self employed workers. From 6 April 2026, sole traders and landlords with qualifying income above £50,000 will be required to comply with Making Tax Digital for Income Tax, submitting quarterly summaries of income and expenses rather than a single annual return.
HMRC urged affected drivers and operators to begin preparing now by signing up through GOV.UK to familiarise themselves with the new system. For taxi drivers running small, cash intensive businesses, the shift to quarterly digital reporting is expected to require changes to record keeping practices and potentially greater reliance on accounting software.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: “Don't leave it until deadline day. Filing now will give you peace of mind that your tax return is completed and if you have tax to pay, you have a week to arrange payment.
“If you're worried about paying your tax bill, you may be able to set up a payment plan online – search 'difficulties paying HMRC' on GOV.UK."
