Online Tax Filing Deadline This Month: Time to Pay Instalments Available; Council Tax Could Rise to £7,500; Global Crypto Tax Rules Take Effect
- TBA
- 5 days ago
- 6 min read
Self Assessment customers can spread the cost of their tax bill with HMRC’s Time to Pay service.
As the festive season approaches, many people face increased spending and greater financial pressure over Christmas and the New Year. UK tax authority HM Revenue and Customs (HMRC) has recently reminded Self Assessment taxpayers that support is available if they are experiencing difficulty paying their tax bill, and that official options exist to help manage payments more flexibly.
HMRC confirmed that the deadline to file and pay Self Assessment tax for the 2024–2025 tax year is 31 January 2026. Taxpayers who are unable to pay the full amount by the deadline may, after submitting their tax return, apply online for a Time to Pay arrangement, allowing the tax bill to be spread across monthly instalments.
HMRC noted that a Time to Pay arrangement can only be set up after a Self Assessment return has been filed. Taxpayers with tax liabilities of £30,000 or less can arrange instalment payments entirely online via the HMRC website, without contacting HMRC directly. Those owing more than £30,000, or who require a longer repayment period, may still apply but will need to contact HMRC for an individual assessment.
Since the service was launched on 6 April 2025, a total of 17,955 Self Assessment taxpayers have successfully set up online payment plans, helping them avoid late payment penalties.
HMRC also reminded taxpayers who receive a Simple Assessment notice that their payment deadline is 31 January 2026. Simple Assessment generally applies where:
Income Tax remains unpaid for the 2024–2025 tax year; and
The tax cannot be collected through the PAYE system by an employer or pension provider.
Simple Assessment taxpayers do not need to register for or complete a Self Assessment tax return. Where a Simple Assessment for the 2024–2025 tax year is issued on or after 31 October 2025, taxpayers will have three months from the date of the assessment to pay the amount due.
For both Self Assessment and Simple Assessment, tax may be paid in full or in instalments, provided the balance is cleared by the relevant deadline.
Other key tax reminders
Where a tax bill includes Class 2 National Insurance contributions, late payment may affect entitlement to certain contribution-based benefits.
Child Benefit claimants who previously filed a tax return solely to pay the High Income Child Benefit Charge (HICBC) can now opt out of Self Assessment and pay the charge through their tax code using the new PAYE digital service.
Eligible taxpayers may contact HMRC before the filing deadline to de-register from Self Assessment; where a return has already been submitted, de-registration can take effect from the following tax year.
The 2025 Winter Fuel Payment (and the Pension Age Winter Heating Payment in Scotland) does not need to be included in the 2024–2025 tax return; these payments will be accounted for in the 2025–2026 tax return, due by 31 January 2027.
Sole traders and landlords with annual turnover above £50,000 will be required to use Making Tax Digital (MTD) for Income Tax from 6 April 2026, including the submission of quarterly summaries of income and expenses to HMRC.
New council tax bands as UK households face up to £7,500 charge
The Labour government plans to introduce four new Council Tax bands from April 2028. The new charges will be added on top of existing Council Tax bills and will be payable by property owners rather than tenants.
It has been confirmed that residential properties valued at more than £2 million will be subject to a High-Value Council Tax Surcharge (HVCTS). Under the new structure, homes valued above £2 million will incur an annual surcharge starting at £2,500, while properties valued at over £5 million will face charges of up to £7,500 per year.
Commenting on the changes, the UK Valuation Office Agency (VOA) stated that the Autumn Budget confirmed the introduction of a new High-Value Council Tax Surcharge from April 2028 for residential property owners in England with properties valued at £2 million or more. The VOA clarified that eligibility for the surcharge will not be determined by existing Council Tax bands, which are based on 1991 property values. As a result, current Band F, G, and H classifications will not be used to assess liability for the new charge.
Instead, the VOA will conduct an independent and targeted valuation exercise in 2026 to reassess current property values. Properties assessed at £2 million or above will be placed into one of four high-value surcharge bands.
The surcharge will operate separately from the existing Council Tax system, meaning current Council Tax bands will remain unchanged and continue to apply. Likewise, any future changes to Council Tax bands will not affect whether a property is subject to the high-value surcharge.
According to Birmingham Live, the latest figures from HM Revenue and Customs (HMRC) show that approximately 98,450 residential property transactions were completed in October 2025. This represents a 2% year-on-year decline, but a 2% increase compared with September 2025.
Property agency Jackson-Stops noted that while some transactions may have been accelerated to complete ahead of the Autumn Budget deadline, overall market sentiment remains cautious. In the short term, housing supply in the UK market is expected to increase, particularly among properties priced just above the £2 million threshold, which may see modest price adjustments. At the same time, demand for properties below the threshold may rise, as buyers reassess budgets in light of household cash flow considerations.
Overall, analysts believe the Budget has not dealt a significant blow to buyers, which should help support housing sales in the coming months.
New Crypto Tax Rules Hit 40+ Countries as HMRC Targets Exchanges
Starting in 2026, the “anonymous era” of cryptocurrency trading may come to an end. Under new rules developed by the OECD’s Crypto-Asset Reporting Framework (CARF), the UK and 47 countries and jurisdictions worldwide have officially launched a mandatory reporting system for cryptoasset transactions. Under this framework, cryptocurrency exchanges are required to fully disclose user transaction data to tax authorities to support cross-border tax compliance.
To date, 75 countries have committed to implementing CARF rules. Major crypto finance hubs—including the UK, the US, the EU, UAE, Hong Kong, Singapore, and Switzerland—plan to enforce the regulatory requirements from 2027, with the first automatic information exchanges scheduled for 2028.
According to the Financial Times, leading cryptocurrency exchanges are now required to collect and store full transaction histories of UK users, including purchase prices, sale proceeds, and gains, as well as tax residency information. HM Revenue and Customs (HMRC) plans to share this data automatically with tax authorities in participating countries starting in 2027. The initial round of information exchange will include all EU member states, the Channel Islands, Brazil, the Cayman Islands, and South Africa.
The United States is expected to implement the CARF framework in 2028 and begin cross-border data exchanges in 2029.
Despite tighter regulations, market data shows that retail investors are not withdrawing en masse. Asher Tan, CEO and co-founder of UK-compliant exchange CoinJar, noted in the weeks leading up to the fiscal budget: “GBP deposits exceeded withdrawals by 16%, indicating that investors are favoring long-term holdings rather than panic selling.”
He added that clearer tax reporting standards will provide certainty for ordinary users, while also emphasizing the importance of using compliant trading platforms.
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