London, Jan 17, 2026, 21:01 GMT
- Over 54,500 solar households risk a £100 fine if they fail to file their self-assessment by the January 31 deadline
- Taxable export income now qualifies for HMRC’s £1,000 trading allowance, joining other “side hustle” earnings.
- HMRC helplines have experienced outages and lengthy delays amid surging filing demand
More than 54,500 UK households with rooftop solar panels face an automatic £100 penalty if they miss the Jan. 31 deadline for filing a Self Assessment tax return, GB News reported Saturday. This annual return is used to report income not taxed at source. The report estimates around 605,966 solar owners could exceed HMRC’s £1,000 trading allowance—the tax-free threshold for small side incomes—when export payments are added to other earnings. George Penny, founder of solar installer The Solar Co, warned the £100 fine might “wipe out around a third” of some households’ yearly export income. 1
HMRC issues a reminder with just two weeks left before the online filing deadline at 11:59 p.m. on Jan. 31. This cutoff applies to returns covering the tax year from April 6, 2024, to April 5, 2025. It’s a key date for anyone earning outside PAYE — the pay-as-you-earn system most employers use — as well as for those who must pay any outstanding tax by then. 2
HMRC warns late filers will incur a £100 penalty right away. After three months, daily fines kick in, followed by bigger penalties at six and twelve months. The fixed fine stands even if no tax is owed. 3
Many solar households receive payments via the Smart Export Guarantee (SEG), a government-backed program started in 2020. It mandates certain electricity suppliers to pay small generators for low-carbon energy fed into the National Grid, according to regulator Ofgem. SEG suppliers determine their own rates and contract terms, so Ofgem recommends that households compare offers. 4
HMRC permits individuals to earn up to £1,000 annually in trading income without paying tax. Beyond that threshold, people typically need to register for Self Assessment and report the income. This allowance covers total gross income from all trades combined, not each separate income source. 5
The surge in filings is straining HMRC’s customer service. LBC reported that callers faced extended waits, with HMRC automatically disconnecting calls after 70 minutes on hold. On Thursday, HMRC’s helplines were offline for a period due to a technical fault, leaving taxpayers unable to get last-minute assistance. 6
The Telegraph reports that HMRC’s customer service is reaching a “crisis point” with the deadline looming. 7
HMRC announced on Jan. 5 that over 12 million people are set to file returns for the 2024-25 tax year, with around 5.65 million still outstanding at that date. “New Year is a great time to start afresh,” said Myrtle Lloyd, HMRC’s chief customer officer, in the update. 8
HMRC has been steering taxpayers to digital options, including its mobile app. According to the agency, the app displays a user’s Unique Taxpayer Reference (UTR), allows viewing of income history, and facilitates Self Assessment payments—all accessible via Government Gateway credentials. 9
Not all solar tax exposure is the same. Households qualify for SEG payments only if they meet certain eligibility criteria, and those already receiving export payments under the older Feed-in Tariffs scheme cannot claim the SEG tariff, according to government guidance. Even when export income counts as taxable, some households might still stay within the £1,000 allowance once other side income is factored in. 10
HMRC is warning taxpayers to stay alert for scams as the deadline approaches. Lucy Pike, HMRC’s chief security officer, urged people to “be extra vigilant” and report any suspicious contact directly to HMRC. 11
A Guardian guide advised taxpayers to gather documents like P60s and pension statements well in advance, and to verify if savings interest or child benefit repayments require filing a return. It also pointed out that the HMRC app often beats calling for simple queries during the January rush. 12
