Low-income self-employed most likely to miss tax deadline

New data from HM Revenue and Customs reveals that self-employed workers on lower incomes were significantly more likely to miss the January 31 self-assessment tax return deadline for the 2023-2024 tax year, facing automatic 100-pound fines as a result.

The figures, obtained by retirement savings provider PensionBee through a freedom of information request and released on Tuesday, show that 5.9 percent of self-employed individuals earning below the basic rate threshold filed late. This compares to 3.1 percent of basic rate taxpayers, 2.7 percent of higher rate taxpayers and 2.6 percent of additional rate taxpayers among the self-employed. In total, about 180,000 self-employed filers submitted returns after the deadline, with roughly 94 percent of them falling into the below-basic-rate or basic-rate bands.

Those who miss the deadline incur an initial 100-pound penalty, with additional charges for prolonged delays. HMRC can waive fines if taxpayers provide a reasonable excuse, such as serious illness or unexpected circumstances.

PensionBee attributed the disparity to challenges faced by what it calls the "invisible workforce" of lower-income self-employed workers. These individuals...