Important Tax Year Dates

tax year dates

As we approach the end of another year we thought it would be helpful to provide you with a list of important tax year dates for your diary.

The UK tax year is different to the calendar year and is used to calculate tax payable or owed. It starts on the 6th of April each year and ends on the 5th of April the following year. Also referred to as the financial year, it is a period of 12 months which is used to calculate tax for employed and self-employed tax payers. However, not all businesses manage their books according to the standard tax year.

Read on to find out the important tax year dates not to miss.

Why Are Tax Year Dates Important?

Knowing the tax year dates is crucial in budgeting and ensuring that you meet tax deadlines. Missing deadlines can incur costly penalties and cause unnecessary hassle and extra admin.

Self Assessment Tax Returns

tax year dates

The deadline for submitting a Self Assessment tax return is not to be confused with the end of the tax year. As a self-employed taxpayer you must complete a personal Self Assessment tax return each year. If you don’t complete your tax return on time HMRC will charge you late filing penalties which vary depending on how late the tax return is.A self-assessment tax return must be completed by the 31st of January after the end of the tax year you are submitting it for.For example a self-assessment tax return for the tax year 06.04.2020 – 05.04.2021 must be submitted by 31.01.2022If are submitting a self-assessment tax return for the first time you must register by the 5th of October in your businesses 2nd tax year. This will mean that you can get your Unique Taxpayer Reference number (UTR) number and activation code in plenty of time to file your first return.

VAT Returns

vat returns

Businesses who pay VAT can choose to do so monthly, quarterly or through MTD for eligible businesses. The deadline for VAT return submissions is 1 month and 7 days following the end of the previous VAT period.

For example, if your business pays VAT quarterly the deadline for VAT returns and payments for the accounting quarter period ending the 30th of November 2021 is the 7th of January 2022.

Corporation Tax

tax year dates

Corporation Tax is owed by all UK limited companies. Corporation Tax Returns (CT600) must be submitted 1 year after your year end.  Payments of Corporation Tax must be made 9 months and 1 day after your year end. This means that the deadlines vary depending on the date of your year end.

For example, if your businesses year end is the 31st of December 2021, then your Corporation Tax payment will be due by 1 October 2022.

Other Tax Deadlines

Another important tax deadline to remember is Capital Gains Tax. This is a tax on the profit when you “sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.”

It is the gain (profit) you make that is taxed, not the amount of money you receive.

For example, if you buy a house for £125,000 and then sell it for £150,000 CGT is payable on the £25,000 you have gained.

Capital Gains Tax is payable on the following:

However, you only need to pay CGT on your overall gains above your tax-free allowance which is:

  • £12,300
  • £6,150 for trusts

Capital Gains Tax Deadlines

capital gains tax

The deadline for reporting Capital Gains Tax over your annual allowance depends upon what you made the gain on.

There are different ways to report and pay Capital Gains Tax due on:

  • UK residential property sold since 6 April 2020
  • any other gains

To report any capital gains you’ll need:

  • calculations for each capital gain or loss you report
  • details of how much you bought and sold the asset for
  • the dates when you took ownership and disposed of the asset
  • any other relevant details, such as the costs of disposing of the asset and any tax reliefs you’re entitled to

If you sold property in the UK on or after 6 April 2020 you must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account.

You must do this within:

  • 60 days of selling the property if the completion date was on or after 27 October 2021
  • 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021

We Can Help

tax year dates

Whilst remembering the important tax year dates is now easy thanks to our guide, the calculations that accompany them are not. The experts at K.A.Farr & Co are adept at dealing with all types of tax returns and can help take the stress out of tax for you.

If you would like to discuss your tax with one of our friendly staff then don’t hesitate to get in touch.

You can contact us on 01704 211 434 or info@kafarr.co.uk