A Detailed Guide About What Date Does the
Tax Year Start?
Home / Tax Year Start Date
In the UK, a short answer about the tax year start date is 6th April.
Even then, many people usually find it difficult to keep a record of taxes. However, it is extremely important to keep a record of tax dates to save oneself from penalties. If you ask any self-employed person, small business owner, or high-income earner, they’ll tell you this: knowing your key tax dates can save you from some serious consequences. In this regard, it is important to be with a tax consultant or a credible taxation firm. MMBA Accountants has many tax experts that can save you from unfavourable outcomes.
Briefly summing, 6th April is the date. That’s when the UK tax year starts every single year. It’s neither the start of a calendar year nor the end of a financial year for many businesses. So why not 1st January or 1st April?
Let’s dig into that.
Table of Contents
Why Tax Returns, Deadlines, and Bills Matter
It is important to understanding when the tax year starts and ends. Thus, for people, dealing with self assessment tax returns, corporation tax, or even simple income tax reporting, the breakdown is here.
The important tax year dates you need to keep in mind:
Key Tax Dates and Deadlines
There are certain key conditions for SSE Eligibility. To qualify for the SSE, both the investing and target companies must meet the following key conditions:
If you want to avoid penalties, mark your calendar against these dates
6th April
New tax year begins
- The date from which your new personal allowance, annual allowance, and capital gains allowance resets.
- Start logging any taxable income, foreign income, or untaxed income for the new year.
5th April
End of the tax year
- Final day to make use of your current year’s allowances (e.g., individual savings account contributions, pension contributions).
31st July
Previous Tax Year Due Payment
- Second payment on account due for the previous tax year (if applicable).
- Only applies if your last self assessment tax bill was over £1,000 and less than 80% of your tax was collected through your tax code.
31st October
Deadline for filing a paper tax return.
- If you’re still doing your self assessment via paper return, mark this date. It’s your final day to send it in the old-fashioned way.
31st January
The payment deadline for:
- Filing your online tax return
- To pay any outstanding self assessment tax
- Make your first payment on account for the current tax year
Moreover, it is also important to have a knowledge about UK Tax codes and their meanings to stay safe from penalties.
Who Needs to File Self Assessment Tax?
Not everyone in the UK files a self assessment tax return, but if you fall into any of these categories, you probably should:
- You’re self employed
- Have high untaxed income (like rental income or foreign income)
- Earning more than £100,000
- You owe capital gains tax
- Claiming certain forms of tax relief
- Need to pay the high income child benefit charge
- You’re a director of limited companies
- Receiving money from abroad
If you’re sending in a paper tax return or choosing to file online, it is important to understand your tax year dates.
Corporation Tax and Limited Companies
If you run a company, things are different. Your corporation tax bill is linked to your company’s accounting period. It is not according to the standard UK tax year. Most businesses align their annual accounts with the fiscal year, but not always.
Even if you’re not doing a self assessment, as a business owner, you’ll still have to think about:
- Your confirmation statement
- VAT registered businesses and quarterly returns
- Making Tax Digital compliance
- Online submission of records
Still, knowing the personal tax year start and end date helps you keep your personal and business tax affairs in sync. Also, if you get a tailored advice by an expert according to your needs, such personal taxation service can also save you from taxation crisis.
Income Tax, Capital Gains, and Allowances
Each new tax year brings a new set of thresholds and allowances:
Who Needs to File Self Assessment Tax?
Each new tax year brings a new set of thresholds and allowances:
Personal allowance
The amount of taxable income you can earn before paying income tax
Capital gains allowance
The limit before you owe capital gains tax on profits from selling assets
Annual allowance
The maximum you can contribute to pensions with tax benefits
You can schedule things timely and can maximise your benefits, if you are planning to any major financial moves.
Online vs. Paper: How Should You File?
Filing your assessment return is easier than ever with HMRC’s online tax return portal. You can file online any time up to 31st January.
But if you’re still going old-school with a paper return, remember that your due date is 31st October.
Keep in mind:
- Postal payments take longer
- Electronic payments are processed faster
- Advance payments might be required depending on your tax owed
Most people prefer to file their tax return online because it gives them more time and instant confirmation from HM Revenue.
Common Mistakes to Avoid
There are certain common mistakes that you must avoid
1. Missing the First Payment on Account
If your tax bill was high last year, HMRC may ask you to make advance payments towards the next one. These are split into two parts: first payment in January and second payment in July.
2. To Ignore Untaxed or Foreign Income
Even if it wasn’t taxed at source, you still need to report untaxed income like dividends, crypto profits, or foreign income. Moreover, such issues also can to CIS Tax deduction. Thus, it is important to ignore such mistakes.
3. Not Updating Your Tax Code
A wrong tax code can mean you’re overpaying or underpaying the income tax. Either way, you don’t want that.
4. Missing the Reporting Deadline
Every calendar month, HMRC receives thousands of late submissions. Don’t be one of them. Mark the final date to submit your tax return, especially if you’ve received a self assessment notice.
How to Stay on Track
If you’re feeling overwhelmed, don’t worry. Here are a few tips:
- Use tax software or spreadsheets to log income throughout the year
- Set calendar reminders for every important date
- If needed, get tax advice from an expert tax advisor
- For vat registered businesses, sync your VAT periods with your financial year to reduce confusion
- Submit your online tax return earl; even though the final day is 31st January, don’t wait until the last minute
- Consider the calendar year vs. fiscal year differences if you have international income or accounts
Conclusion
Now you know exactly what date the tax year starts: 6th April, every year, no matter what. Thus, to understand the UK tax year, keeping up with key tax dates, and filing your self assessment tax return on time will keep HMRC happy and keep your wallet safe from penalties.
If you’re a freelancer, landlord, director, or someone dealing with capital gains, being ahead of the tax year start makes it easier to budget, and plan. So mark your calendar, gather those receipts, and embrace the fresh tax year like a champ.
Contact us if you need help filing your tax return or want clarity on your BR tax code.
FAQs
What date does the UK tax year start and end?
The UK tax year starts on 6th April and ends on 5th April the following year. This applies to personal income tax, allowances, and self assessment.
Why doesn't the tax year start on 1st January or 1st April?
The start date which appears a bit odd is due to the 1752 switch from the Julian to Gregorian calendar. The shift took place from the original 25th March date to 6th April.
Who needs to file a self assessment tax return?
Self-employed individuals, landlords, high earners, company directors, and anyone with untaxed income usually need to file for that.
What are the key deadlines to remember for tax returns?
The key deadlines are: 31st October (paper return), 31st January (online return + payment), and 31st July (2nd payment on account if applicable).
How can I avoid penalties from HMRC?
Track your income regularly, stay aware of deadlines, and file your returns early or better work with a tax expert like MMBA Accountants.
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