Thousands of people filed their tax return on Christmas Day ahead of another trying year for the self-employed and freelancers.

More than 31,000 taxpayers submitted their self-assessment tax return between Christmas Eve and Boxing Day. A total of 2,828 did so on December 25, according to HM Revenue & Customs – more than last year’s total of 2,700.

Tax returns must be filed online by midnight on January 31 2022, but hundreds of thousands of people fail to submit their forms on time each year. In January 2021 a record 1.8m taxpayers missed the deadline, almost twice as many as the 958,000 people who filed late in 2020. 

Tax debts have soared during the pandemic as the self-employed battled successive lockdowns and struggled to manage their finances.  

Penalties for late filing can snowball quickly. Those who miss the cut-off face an immediate £100 fine and a further £10 daily penalty for up to 90 days after the deadline, up to a maximum of £900. If after six months a return has still not been filed, taxpayers could also be liable for 5pc of the tax due, or £300, if greater.

In the last financial year HMRC waived the £100 late filing fine until the end of February 2021 amid the coronavirus chaos. However, no such reprieve has yet been granted to struggling taxpayers this year.  

Late filers also rack up interest on unpaid tax, which from Jan 4 will be charged at an annual rate of 2.75pc.