UK Tax Return Rush January 26: HMRC £100 Fines Loom, Crypto/CGT Traps
The tax return deadline is 31 January, and late filers face an automatic HMRC £100 fine plus interest. Investors and crypto traders need to check capital gains, dividends, and payments on account before month end. New CGT rules and a specific crypto section raise error risks. We explain what to file, how penalties build, and how to plan cash without forced selling. Act now to file your tax return and keep your portfolio on track.
Deadline and penalties at a glance
File your online Self Assessment and pay what you owe by 31 January for the 2024 to 2025 tax year. This includes any balancing payment and, if required, your first payment on account for 2025 to 2026. HMRC reminds taxpayers there is very little time left to file source. Have your UTR, NI number, P60s, dividend statements, and crypto records ready before you start.
Miss the deadline and you get an automatic £100 fixed penalty from 1 February, even if no tax is due. After three months, daily penalties can apply. Interest is charged from 1 February on unpaid tax. Further late payment penalties, typically at 30 days, six months, and twelve months, can add significant cost. File the tax return first, then arrange a Time to Pay plan if needed.
Crypto tax reporting: traps to avoid
HMRC expects you to report cryptoasset disposals that create gains or losses, plus any income from staking, airdrops, or DeFi interest. The online tax return now prompts for crypto entries, so declare proceeds, allowable costs, and dates. Keep the tax return consistent with exchange reports and wallet trackers, and convert values to pounds using fair, consistent rates on transaction dates.
Crypto is subject to share pooling and the 30 day rule. Match disposals to same day purchases, then 30 day acquisitions, then the pooled average cost. Keep exportable logs for each wallet and exchange, including fees. Capture transfers to avoid double counting. If you used multiple platforms, reconcile totals and back up CSVs in case HMRC requests evidence.
Capital gains and dividends: new 2024/25 rules
For 2024 to 2025, the capital gains annual exempt amount is £3,000. Gains above this are taxed at standard rates for your band. For residential property, the higher rate has been reduced from 28% to 24%. Investors should also note the dividend allowance is £500 for 2024 to 2025, which may increase income tax due.
You must complete CGT pages if your total gains exceed £3,000 or if total disposal proceeds exceed four times the allowance, that is £12,000. This includes crypto, shares, and funds. Check ISA wrappers, since gains inside an ISA are not reportable. Review common pitfalls in last minute filings source.
Cash management for investors before month end
Estimate your bill now so you do not sell into weakness. Use portfolio cash, maturing savings, or planned dividends first. If you must sell, consider tax lots with lower gains and avoid 30 day buybacks that affect cost basis. If liquidity is tight, file the tax return and set up a Time to Pay plan online.
If most of your tax comes from untaxed income, you may owe two payments on account, each half of last year’s bill, due 31 January and 31 July. Check whether your current year income is lower, then claim to reduce payments with a clear estimate. Keep a buffer for interest if your reduction proves too aggressive.
Final Thoughts
With six days to go, the priority is simple. Gather records, complete your tax return, and pay what you owe or agree Time to Pay. Investors should confirm CGT calculations, apply pooling and 30 day rules for crypto, and check whether the lower £3,000 allowance brings more gains into charge. Review dividend income against the £500 allowance and set aside cash for any payment on account. Avoid forced selling by estimating early and using available cash first. Submit the tax return, then fix cash flow with a realistic payment plan. Doing this now reduces penalties and keeps your investment strategy steady.
FAQs
What happens if I miss the Self Assessment deadline?
From 1 February, HMRC applies a £100 fixed penalty, even if you owe no tax. Interest starts on unpaid tax. After three months, daily penalties can apply, and further late payment penalties are charged at 30 days, six months, and twelve months. File the tax return first, then arrange Time to Pay if needed.
Do I need to report crypto if I made no profit?
You must complete CGT pages if your total disposal proceeds exceed four times the annual allowance, £12,000 for 2024 to 2025, even if gains are within the £3,000 allowance. Also report any taxable crypto income from staking, airdrops, or rewards. Keep accurate dates, values in pounds, and fees for each transaction.
How do payments on account work for Self Assessment?
If most of your tax is not collected through PAYE, you usually make two advance payments, each 50 percent of last year’s bill. They are due on 31 January and 31 July. If your current year income is lower, you can claim to reduce them, but interest may apply if you cut them too far.
What records should investors keep for CGT and crypto?
Keep transaction dates, quantities, prices in pounds, and fees. For crypto, maintain wallet and exchange CSVs, same day and 30 day matches, and pooled cost. For shares and funds, track contract notes and dividend statements. Store ISA statements separately, as gains inside ISAs are not reportable on your tax return.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
