UK Tax Year: A Branded Guide to Stay Compliant with Tax Regulations

Every resident of the United Kingdom, whether self-employed, salaried, or business owner, needs to follow the UK tax year rules to adhere to HMRC (His Majesty’s Revenue and Customs). 

Understanding the role of taxes is crucial to avoid penalties and even manage finances efficiently. You can file your return through tax accounting or hire an accountant for your firm, but understanding important aspects like the start-to-end date and the methods will help you stay in line with the regulations. Knowledge of topics like tax identification numbers in the UK can also help streamline compliance.

We have covered everything from tax year date to methods to follow in a simple and crisp manner in this blog. So read through and stay updated with the latest regulations— and don’t miss out on understanding salary vs hourly pay structures that can affect your tax situation!

When is the Tax Year in the UK?

The UK tax year is 12 months which the tax collecting authority (HMRC) evaluates and collects taxes from individuals and businesses in the country. The start and end dates are 6 April to 5 April. So, when does the new tax year start? You can say 6 April of every following year. For example, the tax period of 2025/2026 can be counted from 6 April 2025 to 5 April 2026. 

Unlike other countries following the calendar year, the UK’s timeline might seem peculiar because it follows the British adoption of the Gregorian calendar, introduced in 1752. Keeping the start date close to 25 March (which was the traditional New Year) and adding an 11-day correction, the English tax year start date was set to 6 April. 

Following through the tax year dates is important as it:

• Accesses your income for tax purposes.
• Rolls out the deadlines and benefits on tax returns.
• Allows you to pay HMRC timely to maintain a good business and personal record. 

So, in short, you need to maintain a track record and file your taxes between 6 April to 5 April every year. This is especially important for startups — explore accounting for startups to avoid common pitfalls.

UK Tax Year: Key Dates and Deadlines 

Taxes are unavoidable, but paying them serves a good purpose. Regularly filing taxes can build an excellent FICO score, allows investors to have faith in business, access loans, and even apply for government grants and schemes.Alongside this, managing cash flow with a clear cash flow statement ensures accurate budgeting. However, the key is to make notes and work accordingly to submit the required documents by the UK tax deadline: 

• 6 April: The start of the fiscal year in the UK.
• 31 May: Employers are required to roll out P60 forms to the employees documenting their total earnings and deductibles, and taxes. 
• 6 July: Last date for employers to hand over P11D and P11D(b) forms to the employees.
• 31 October: Last date for filing for self-assessment tax returns for the fiscal year.
• 31 January: This is the last date of filing online and settling dues remaining. 
• 31 July: Second payment on account of the fiscal year. 

Please note that you can not afford to miss these dates, else you will have to pay penalties with a significant drop in FICO score for not adhering to the law. 

How the UK Tax Deadline Impacts Individuals? 

The tax system has different implications on every individual, depending on how much they earn, revenue streams, responsibilities, and more. A good practice is to also track concepts like biweekly pay cycles to plan payments effectively. Below, we have broken down the laws set for each category of individuals and how they can file for the end of the tax year:

Salaried Employees

For employees, taxation, and filing are pretty simple, as they’re generally handled by the PAYE (Pay As You Earn) system. Here, the employer evaluates and deducts the tax amount and pays it to the authority on the employee’s behalf. 

After the completion, the employers hand out the P60 and P45 forms detailing the deductions and summarizing the total income at the end of the tax year. However, learning about what are wages payable helps you understand your payslips better.

Tax Filing Method: Most employees do not need to file taxes themselves, as the employers have already done the job, unless they have an additional revenue source that comes in a tax bracket.  

Self-Employed 

If you have your own small business, you work as a freelancer, which means you do not receive a salary slip and are responsible for filing taxes on your own. Every self-employed person must track their income, calculate business expenses, and check the tax amount they owe. 

Tax Filing Method: You need to first register yourself as ​​self-employed with HMRC. Next, submit accurate records and documents by 31 January. You can use UPI or net banking to complete the payment once the bill is generated. 

How Tax Year UK Dates Impact Businesses?

As there are multiple types of businesses, each has to follow a different set of rules for taxation. Let’s understand these types and their obligations here: 

Sole Traders 

In sole tradership, the company is run and owned by an individual or single owner. The owner has complete control over the rights, assets, and profits. 

Income tax rules for sole traders: 

• National Insurance Contributions (NICs): Class 2 and Class 4 NICs are based on earnings. 
• VAT (when applicable): Businesses with earnings surpassing £90,000  must register and implement VAT on taxable sales. 

Limited Companies (Ltd)

Ltd companies have their own identity and act as a separate entity, keeping the owner’s identity shielded. These companies have the right to raise funds from the public and private investors. 

Income tax rules for limited companies: 

• Corporate Tax Payment: For the financial year 2024/2025, the rate is set at 25% on profits, though small businesses earning less than £50,000 can get the relief. 
• File Company Tax Returns: Must be submitted annually to HMRC. 
• PAYE for Employees: When hiring staff, companies must oversee a PAYE payroll.

Limited Liability Partnerships (LLP)

Companies formed with multiple partners are registered under an LLP. These companies have their own identities, and the partners are not liable for the debt. 

Income tax rules for LLP: 

• Partners are Liable for Income Tax: Profits are distributed among partners, who report their earnings via self-assessment. 
• No Corporation Tax: Unlike limited companies, LLPs are exempt from paying Corporation Tax. 
• VAT and PAYE: LLPs may need to register for VAT and set up PAYE if they have employees.

The Role of UK Tax Year Dates in Business 

Tax year dates do leave a big impact on the state of businesses. It affects the accounting process, reporting tasks, bookkeeping, and overall business operations. 

These dates are an important part of businesses as they determine the amount of profit and loss made throughout the whole year.

Also, it is the time to file for taxes and close the accounting books. Here is a detailed explanation of the impact of tax dates on businesses.

• Tax Compliance: As the tax deadline approaches, businesses must file their annual income tax returns for the year. Tax compliance is a significant practice that all business owners should do; otherwise, they would have to face penalties and legal issues.

• Budgeting: Budgeting always comes after filing taxes. With budgeting, businesses are required to set clear targets and put their resources to use. By doing budgeting the right way, business owners can allocate their time and resources for the rest of the year and take sustainable actions for their businesses. 

• Workload Management: The Tax year date also brings out the task of workload management. The process of filing taxes often brings extra work for finance and accounting teams. Due to the intense work pressure of closing books, preparing statements and filing for returns, there is an extra need for workload management.

• Year-End Close: As the tax year date comes to an end, it leads to the year-end close, where all businesses “close the books”. This process includes reconciling all accounts and ensuring that all income and expenses are accurately calculated. 

What are New Updates on UK Tax? 

The landscape in the UK is constantly evolving and adapting to continuous changes. As far as new tax updates for the year 2025-2026, here are some things you should know about. 

• Standard-rate raid tax has increased to £195.
• HMRC late payment interest has been increased to 1.5%.
• Capital Gains Tax (CGT) has been increased to 14%.
• Retail, Hospitality, and Leisure Relief is now capped at £110,000.
• VAT Registration Threshold is now increased to £90,000.
• Employment Allowance is now increased to £10,500.

Tips to Comply with UK Tax Regulations 

Complying with UK tax regulations can be a difficult task, but anything can be solved with some tips. Here are some general tips you should know as a taxpayer in the UK:

• Understand your tax obligations as an individual and a businessman.
• Ensure accurate report-keeping throughout the year.
• Meet deadlines on time.
• Stay updated on tax laws.
• Know when to seek professional help.
• Notify HMRC of changes in your earnings.

Following these tips, you can stay ahead of the curve and file your taxes successfully. 

Wrapping Up!

The tax years dates in the UK are from 6 April to 5 April. You must set a deadline to avoid last-minute panics and penalties. Here’s what individuals and businesses can do: track finances, keep records and receipts, and submit the application in a timely manner with accurate payment. 

This lets HMRC know that you are a good civilian who respects the laws, and therefore, allows for tax benefits, loan options, and government grants as a reward. 

We have explained when does the tax year begins, how taxation impacts individuals and businesses, and tax filing methods in this blog. Follow the deadlines and visit the HMRC official portal for updates and new rules. 

Also Read: 40% Tax Bracket in the UK: Threshold Rates and How to Reduce It?

Frequently Asked Questions 

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