The UK financial year is something every self-assessment taxpayer should be well aware of. Keeping the dates of the tax year in the UK in mind will help you avoid any penalties.

The tax year lasts for 12 months. However, the confusion begins when people come to know that it’s not the same as the calendar year.

In this article, we look at the important dates in the UK financial year and how you can plan your tax filing around it.

But first, let’s look at who needs to pay self-assessment tax.

Who is Eligible to Pay Self-Assessment tax?

If the wages or pension is your only means of income, then you do not need to make any tax returns. But if you belong to any of the following categories within the last UK Financial Year (April 6th to April 5th next year), then you are eligible to pay a self-assessment tax.

  • If you are self-employed and have earned more than £1,000 before deducing tax relief.
  • If you are involved in a business partnership
  • If you had earned money by tips and commissions
  • If you had earned money from renting out properties
  • If you made money from foreign incomes
  • If you got any income from savings, investments, and dividends

Besides the above categories, you can send out a self-assessment tax return if you want,

  • To prove that you are self-employed (helps to claim Tax-Free Childcare or the maternity allowance).
  • To claim tax reliefs.

UK Financial Year – What are the tax year dates?

A tax year, just like a regular year, lasts 12 months. The UK tax year is different from the calendar year and is called the UK financial year.

When it comes to important days in the UK financial year, there are many to discuss. Let’s get you up to speed about those dates.

When does the tax year start and end in the UK?

The financial new year begins on April 6th each year and ends on April 5th the following year. For example, the 2021/2022 tax year began on April 6th 2021 and will come to a close on April 5th 2022.

Why is the UK tax year important?

Tax is complicated and can get easily overwhelming if you haven’t planned for your tax throughout the year. The UK financial year can help you not just to plan your budget and prepare for your tax properly – but avoid deadlines that might end in a penalty.

When you know all the dates of the UK financial year that are important to you, you will be able to have better control of your tax filing process and more peace of mind.

The UK Tax Year 2021-2022

2021-2022 is the current passing UK financial year. When does the tax year start is a question that is often asked. The year began on April 6th 2021, and will end on April 5th 2022. Any income you earned in the UK within this period may be subject to taxes. Failure to meet tax deadlines will lead to penalties and fines.

You may fail to file your tax return or forget to do so before the deadline. If this happens, you have to pay any penalty fines that you are entitled to.

There are various types of penalties. They are,

  • If you receive a letter or an email from HMRC telling you to file your tax return, you must comply even if you don’t owe any taxes. If you don’t send a tax return here, you might have to pay a fine.
  • In the case of a late filing, you have to pay a penalty of £100 that is non-refundable.
  • If your tax return filing is 3 months late, you will be charged a penalty of £10 per day, up to a maximum of £900.
  • If your tax return filing is 6 months late, then you will be charged £300 or 5% of the tax you owe. Whichever is higher will be considered as your penalty.
  • If your tax return is 12 months late, you will have to pay another £300 or 5% of the tax owed. The higher value is considered as the penalty in this case too.

Key dates for financial calendar 2021-2022

The importance of the days of the financial year is something that every taxpayer should keep in mind. Keeping up with these days, which occur throughout any financial year, will help to manage your taxes easily. Let’s look at the key dates for the 2021-2022 tax year beginning from the first day.

  • April 6th 2021, was the first day of the financial year 2021-2022.

  • April 19th 2021, was the Real Time Information (RTI) submission deadline of the year.

  • The addition of Interest for any unpaid PAYE and National Insurance in the 2020-2021 tax year started on April 20th 2021.

  • Remittance of any due PAYE for the 2020-2021 tax year was done on April 22nd 2021.

  • Calculating the 2020-2021 year’s daily penalties started on May 1st 2021.

  • May 31st 2021, was the deadline to issue the P60 forms to employees for the 2020-2021 financial year.

  • July 22nd 2021, was the deadline of electronic remittance for the 1st quarter of the 2021-2022 tax year.

  • The Second Payment on Account (POA) for the self-Assessment tax of the year 2020-2021 had to be made on July 31st 2021.

  • October 22nd 2021, was the deadline of electronic remittance for the 2nd quarter of the 2021-2022 tax year.

  • October 31st 2021, was the last day for the postal/paper submission of Self-Assessment tax returns of the 2020-2021 tax year.

  • A penalty of £100 will be applied if the 2021 paper tax return is not filed by November 1st 2020.

  • January 22nd 2022, is the deadline for electronic remittance for the 3rd quarter of the 2021-2022 tax year.

  • The Second Payment on Account (POA) for the self-Assessment tax of the year 2021-2022 must be made on January 31st 2022. This is also the deadline to file Online Self Assessments tax returns for 2020-2021.

  • A penalty of £100 will be applied if the 2021 online tax return is not filed by February 1st 2022.

  • April 5th 2022, marks the end of the 2021/2022 tax year and is the last day for any ISA contributions for the financial year of 2021-2022.

  • April 6th 2022, is the first day of the financial year 2022-2023.

Self Employed people and freelance professionals UK tax date (October 5th)

The registration process for the self-assessment tax return sometimes takes a few weeks to complete. So, starting the registration process by October 5th will give you plenty of time to submit the self-assessment tax return before its deadline on January 31st. With that in mind, register for the self-assessment tax return by October 5th that follows the end of a tax year.

UK Self Assessments tax date ( December 30th)

If you are an employee, filing your online self-assessment tax return by December 30th will make you eligible to pay your taxes through the PAYE (Pay As You Earn) system. This comes in handy if you get charged with a tax bill. If that happens, HMRC will automatically collect any owed tax amount from your PAYE coding in the following year. This is not possible for any self-employed entrepreneurs. You can also negotiate with the taxman to code the tax amount over the following 3 tax years if you are having a hard time paying.

Self-Assessment tax filing UK tax (January 31st)

January 31st is the deadline for the online self-assessment tax return submissions. So, make sure to complete and submit the online tax return soon after April 5th to give yourself room to pay what you owe as tax. Doing so will reduce the chances of you having to face penalties. In the case of the tax year 2021-2022, online tax return submission must be made on January 31st 2022.

Tips to make Self-Assessment Tax filing easier

Filing your self-assessment tax returns can be a bit challenging if you are not competent in accounting. Completing the given forms accurately is not the only important process of self-assessment tax return filing.

Here are some tips to help you get started on filing your self-assessment return.

  • Follow the deadlines.

  • Following deadlines is crucial when doing taxes as missing a deadline could lead to fines and will cause you money. So, it is always good to finish your work before the deadline.

    Here it’s important to keep in mind not to wait until the last minute to file for taxes as there may be additional information and documents that you need to prepare and submit with the forms.

  • Do your taxes online.

  • Doing your taxes online is far easier than doing it the old-fashioned paper way.

    Uploading all the necessary details to HMRC becomes much easier with the online method. You can save your progress and come back later if you find yourself busy. It’s easy and safe, and you can do it anywhere, anytime, right from your digital device.

    If you are not already registered, head on over to the HMRC website and get yourself registered today.

  • Keep Track of your income and expenses.

  • Keeping accurate records of your income and expenses is another valuable tip that could help you file tax returns easier.

You can keep records using a spreadsheet or accounting software. These records can include details such as

  • Bank statements
  • Cheque books
  • Purchase invoices
  • Sales invoices
  • VAT records
  • Credit card statements
  • Payroll records

This information will aid you in completing the self-assessment tax return.

If you have other non-business-related sources of income within the UK tax year, they also should be declared in the tax return forms. Record-keeping becomes invaluable when it comes to providing evidence of income or expenditure.

  • Begin early

  • Start making your preparations and get the necessary details as soon as the UK financial year ends on April 5th.

    This will give you ample time to work on your self-assessment tax returns. Completing everything early will save you a lot of time and frustration rather than rushing things at the last minute.

  • Keep Everything Organized

  • Make filling the self-assessment tax return even easier by keeping everything organized and within hand reach.

    A few of the most important details to keep close and organized are,

  • Unique Taxpayer Number (UTR)
  • National Insurance number
  • Accurate details of your income
  • Accurate details of business expenses
  • P60 document

  • Managing Budgets in advance

  • After successful completion of the tax return, you can do budget management to help make it easier to make the tax payments within the UK tax year.

    This will help you to counter any surprises that the tax bill could throw your way. You can do monthly savings or something similar to put aside money for the tax bill easily.

You might need help

Meeting the deadline is not the hardest thing when it comes to doing your taxes. People often make mistakes and provide inaccurate details by accident, which causes them to pay more than what they owe in the tax bill. Turning over to a professional will help you create a good and accurate tax return as well as help when paying the tax bill.

Apart from that, below are some other benefits of hiring a professional accountant like Philip Nolan Accountant.

  • They will help save money and time
  • They can answer your questions and resolve issues
  • They can help to avoid making mistakes
  • They can do Tax planning for you
  • They will reduce your risk of an audit
  • They can simplify the complexity of the tax code
  • They will help you gain peace of mind about your taxes

Also Read – self-assessment tax guide

Now you have a better idea about the importance of the UK financial year dates. Understanding these days within the UK tax year will help you in managing your tax budgets easily. Use the given tips and knowledge areas to make the best out of your money. If you have any questions, feel free to contact one of our accountants at Philip Nolan Accountant.

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