Navigating the UK Tax Year

Whether you’re an individual taxpayer or a business owner, understanding the structure of the tax year and key deadlines can help you stay compliant and avoid surprises. Here’s a breakdown of the UK tax year and how to navigate it effectively.

In the UK, the tax year runs from April 6th to April 5th the following year. This 12-month period is used by HMRC to assess your income, calculate your tax liabilities, and set deadlines for filing your tax returns.

Why this date rather, this dates back to the change in the calendar in 1582 when Britain switched from the Julian to the Gregorian calendar. It has remained unchanged to this day.

Key dates to remember‍

     April 6th – New Tax Year Begins:

      The UK tax year starts on April 6th each year. This is when your income, savings, and other financial matters are officially calculated for the upcoming year.

       April 5th – End of the Previous Tax Year‍

     The tax year ends on April 5th. This is the cut-off point for the previous year’s income and expenses. Any income received or costs incurred up to this date should be        included in your tax return for that year.

       July 31st – Payment on Account Deadline

       For self-employed individuals and those with rental income or other non-salaried earnings, this is the date for your first payment on account for the upcoming tax        year. Payments on account are made in two instalments (the second being in January), based on your previous year’s tax liability.

       January 31st – Self-Assessment Tax Return Deadline

      If you are self-employed or need to file a tax return for any other reason, this is the last day to submit your online tax return for the previous year (April 6th to April       5th). It’s also the deadline for making any payments due to HMRC, including the second payment on account.

       5. October 5th - Self Assessment registration Deadline

     The deadline to register for Self-Assessment for the previous tax year.

       6. October 31st – Paper Tax Return Deadline

      If you prefer to file a paper tax return, it must be submitted by October 31st following the end of the tax year.

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Key Tax Tips to Help You Navigate the UK Tax Year‍

         Keep Track of Your Income and Expenses:

       Whether you’re an employee or a business owner, it’s crucial to keep accurate records of your income and any deductible expenses throughout the tax year. This will        help ensure you’re not overpaying taxes and can help streamline the process when it comes time to file.

       Take Advantage of Tax Reliefs:

       Make sure you’re aware of all tax reliefs and allowances that might apply to your situation. For example, if you contribute to a pension, you may be able to claim tax        relief on those contributions.

        Plan for Payments:

      The key deadlines for making payments can sneak up on you, especially when you are preoccupied running your own business. Planning ahead for these payments       can help you avoid interest charges or penalties for late payments.‍

We're here to help

      Navigating the UK tax year can be complex, but you don’t have to do it alone. If you’re feeling overwhelmed by deadlines, allowances, or the intricacies of it all, our       expert team at Toast is here to help. Whether you need assistance with filing your tax return, managing your businesses finances, or planning for the year ahead, we       offer tailored accounting services to ensure you stay compliant and maximise your tax efficiency.

       Contact us today for a free consultation and let us help you take the stress out of tax season. We’ll guide you through the entire process, ensuring you meet all       deadlines and pay only what you owe—nothing more, nothing less.

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