Self-employed workers on lower incomes are considerably more likely to miss the self-assessment deadline than their higher-earning counterparts, figures from HM Revenue and Customs (HMRC) suggest. In 2023-24, approximately 5.9% of below basic rate tax self-employed filers submitted their return after the January 31 deadline, compared with 3.1% of basic rate taxpayers, 2.7% of higher rate taxpayers and 2.6% of those paying additional rate tax, according to calculations by PensionBee.
The pension savings provider obtained the data from HMRC following a freedom of information (FOI) request. In total, roughly 180,000 self-employed filers submitted late in 2023-24, of whom around 94% were below basic or basic rate taxpayers.
Generally speaking, those who miss the self-assessment deadline face an initial £100 fine, plus further possible charges. HMRC may waive penalties where late filers can demonstrate a reasonable excuse.
PensionBee suggested the findings highlight a potential knowledge gap amongst lower earners, as well as wider structural concerns. It noted that lower earners may have reduced access to accountants or financial advisers, and could be more vulnerable to the income fluctuations that make fixed financial deadlines more difficult to meet. PensionBee added that its previous research points to a lack of awareness that self-employed pension contributions are eligible for tax relief.
Lisa Picardo, chief business officer UK at PensionBee, said: “Late filing of self-assessment tax returns is not evenly spread across the self-employed population.
“It’s heavily concentrated among those on lower incomes, many of whom sit within what we describe as the ‘invisible workforce’.
“For many of these workers, unpredictable income and limited support make it genuinely harder to stay on top of financial administration and obligations, whether that is filing a tax return or saving into a personal pension.
“Missing the deadline is often a symptom of a wider pressure that the system does not adequately account for.”
An HMRC spokesperson said: “We’re focused on helping customers understand what they need to do and where to get support.
“Every year we run a national campaign to support self-assessment customers to file on time, while providing clear guidance on gov.uk and extra help from our expert advisers for those who need it.
“As a result, 11.5 (million) customers filed their 2024-25 tax return on time.”
