Self-employed people on lower incomes are significantly more likely to miss the self-assessment deadline than higher earners, information from HM Revenue and Customs (HMRC) indicates.
In 2023-24, around 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 from PensionBee.
The retirement savings provider obtained figures from HMRC following a freedom of information (FOI) request.
In total, around 180,000 self-employed filers were late in 2023-24, of which around 94% were below basic or basic rate taxpayers.
In general, people who miss the self-assessment deadline face an initial £100 penalty, plus further potential charges.
HMRC may waive penalties if late filers have a reasonable excuse.
PensionBee suggested the findings point towards a potential knowledge gap among lower earners, as well as broader structural issues.
It said lower earners may have less access to accountants or financial advisers, and may be more exposed to the income volatility that makes fixed financial deadlines harder to meet.
PensionBee said its previous research indicates a lack of awareness that self-employed pension contributions can receive 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.”
