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Millions of Brits are being urged to file their tax return before the January 31 deadline to avoid a £100 penalty from HM Revenue and Customs (HMRC).

An HMRC update last week revealed that 5.6 million people still needed to file their Self Assessment tax returns, leading experts to urge Brits to get their tax affairs in order.

Self-employed 'sole traders' who earned more than £1,000 in the last tax year will need to file a return, as well as business partners, or anyone who had to pay Capital Gains Tax when they sold something that increased in value.

TotallyMoney CEO Alastair Douglas urged British taxpayers to act as soon as possible to avoid the rush at the end of the month.

He said: "Millions of taxpayers will need to complete their self-assessment returns before the end of the month. And, as we edge closer to the deadline, more, and more people will be picking up the phone to call the HMRC helpdesk.

"Lines are likely to be at their busiest nearer to the end of the month, and during the middle and latter parts of the day. So, if you need help with your return, it's best to get it sooner, rather than later.

"Cracking on with your tax return might not only save you time, but also money. That's because the taxman will start handing out £100 fines to anybody who files their return up to three months late and will charge a late payment interest rate of 7.75% per year."

Higher-earning Brits who earned more than £60,000 in the last tax year may also have to file a return if they received child benefits, if they did not pay it through PAYE.

The High Income Child Benefit Charge (HICBC) allows HMRC to claw back payments through the tax system from higher-earning families, at a tapered rate between £60,000 and £80,000, until the benefit is effectively withdrawn for anyone earning more than £80,000.

If Brits have not paid this back through the PAYE system, they will need to file a self-assessment return, and experts have urged higher earners to check their incomes over the past year, to see if any small increase in earnings has tipped them over the edge.

Brits may also have to file a return on foreign investments, or if they earned money from renting a property, earned tips and commissions, or earned income from savings, investments and dividends.

HMRC revealed that as of January 5, some 6.3million Brits had filed their returns.