Crime & Safety
The simple HMRC tax mistake millions make every year
According to HM Revenue and Customs, a record 737,891 people submitted Self Assessment returns in April alone – with more than 86,000 filing on Easter Monday.
Accountants say many taxpayers are trying to avoid the annual “January scramble” that leaves millions stressed every year.
Record numbers of taxpayers are filing their Self Assessment returns early this year as HMRC urges millions not to leave everything until January.
New figures from HM Revenue and Customs show:
- 298,905 people filed between 6 and 12 April
- 86,270 submitted returns on Easter Monday alone
- A record 737,891 filed during April 2026
More than 12 million taxpayers are expected to submit a return before the 31 January 2027 deadline.
HMRC says filing early can help people:
- Budget more effectively
- Avoid deadline stress
- Reduce mistakes
- Receive refunds sooner
- Avoid fines and interest charges
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “For thousands of people, filing early and staying on top of their finances has become the norm.
“It takes the pressure off in January and means they can spend their time focusing on their business and doing things they love.”
Accountant says millions repeat the same January mistake
Accountant and host of @thepracticeownerspodcast Rachel Harris said many taxpayers fall into the same cycle every year by filing in January and then ignoring their finances for the next 12 months.
She said: “HMRC absolutely hate it when people do this, and so many of you do it.
“Once they file their tax return in January, they close the tab, don’t look at their numbers again, while simultaneously promising themselves they’ll do it differently next year.
“And I know it’s not because you’re lazy or bad with money. It’s because tax has become set up as a once-a-year scramble.”
Harris said upcoming Making Tax Digital changes are designed to break that cycle.
“Instead of one stressful moment, it’s about staying lightly connected to your finances throughout the year – little check-ins, clearer numbers, and no big January shock.”
Why filing early could save money
Many taxpayers only discover how much tax they owe after completing their return.
Experts say filing early gives households more time to:
- Save gradually
- Plan for payments
- Avoid financial shocks in January
Taxpayers owed money back from HMRC may also receive refunds faster if they file early.
HMRC says people can check refunds directly through the HMRC app once returns are processed.
First-time filers warned not to wait
Anyone filing a tax return for the first time must:
- Register with HMRC
- Receive a Unique Taxpayer Reference (UTR)
- Wait for separate online access codes
Experts warn the process can take weeks during busy periods.
HMRC fines are now more expensive
The warning comes after an estimated 1.1 million taxpayers missed the filing deadline last year.
Late filers automatically face:
- A £100 penalty, even if only one day late
Additional penalties include:
- £10 daily fines after three months
- A further 5% charge after six months
- Another 5% penalty after 12 months
Late payment charges have also increased.
Since April 2025, HMRC interest rates are now:
- Bank of England base rate plus 4%
With the base rate currently at 4.25%, overdue tax bills can now attract interest of 8.25%.
Major HMRC tax changes have begun
HMRC is also preparing millions for upcoming Making Tax Digital changes.
From April 2026:
- Sole traders and landlords earning above £50,000 must submit quarterly digital updates
From April 2027:
- The threshold falls to £30,000
Taxpayers will still need to submit annual Self Assessment returns alongside quarterly reporting.
Recommended reading:
HMRC scam warning
HMRC also warned taxpayers to watch out for scams during tax return season.
Fraudsters often impersonate HMRC using:
- Fake texts
- Emails
- Phone calls
- Refund messages
Officials warned people never to click unexpected link, share HMRC login details, or hand over personal information without verifying requests.