Brearley & Co Accountants are pleased to offer a free, no obligation, initial consultation with one of our experts who will be happy to discuss your business needs and how we can help you. TAP sought ways to save us tax and made the process straightforward. We really value the effort and support they have given us as a new start up. This odd practice ended in 1900, and since then, the UK has been stuck with 6 April as the official start of the tax year. In 1752, Britain finally conformed to the Gregorian Calendar, officially moving New Year’s Day to 1 January and removing 11 days from the year. That September, 2 September was immediately followed by 14 September.
Mastering Business Taxes in the UK for 2025/26 – Strategies for Sole Traders, Companies, and Landlords
Note here that if you’re not a UK resident yet, you don’t have to tax your overseas income; however, if you are, such payments are obligatory. Overall, there are several types of taxes that you may have to consider as an expat. Finance teams set their clocks to this 12-month period, so it’s important to know how to best prepare for this monumental annual project.
What These Changes Mean for Businesses & Individuals
You should be alert to the details contained in Spotlight 69 as it is HMRC’s view that these schemes do not work, and we will challenge anyone promoting such arrangements. People who use these arrangements may have to pay more than the tax they tried to avoid as well as paying interest, penalties and high fees for using such schemes. On 17 July 2025, the Tax and Chancery Upper Tier Tribunal ruled that the mini umbrella company model used in the case was fraudulent. Read (1) ELPHYSIC LIMITED (2) PHYARREIDON LIMITED (3) ROSSCANA LIMITED (4) ZRAYTUMBIAX LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS 2025 UKUT (TCC). This confirms HMRC’s ability to deregister these companies from VAT. Any tax and National Insurance must be paid by 22 October 2025 if paying electronically, and by 19 October 2025 if you pay by post.
UK Tax Year Explained: Key Dates and Deadlines for 2024/25
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances. You’ll need your National Insurance number and your partner’s National Insurance number. It is also worth checking if you are eligible to backdate your claim, as in some cases you may be eligible to claim from tax years since 5th April 2020. If the total of all gains and losses in the tax year fall within this amount you don’t need to pay any tax. For earnings of £50,271 and £125,140 you’ll pay a higher rate of tax at 40%.
For self-employed professionals, landlords, and individuals with additional income, filing a self-assessment tax return accurately and on time is crucial. Whether you’re a business owner, self-employed, or managing payroll for a growing team, staying compliant with HMRC regulations is essential to avoid penalties and optimise tax efficiency. These forms detail the benefits provided to employees and ensure the correct tax is applied.
Property tax system in the USA
- Tax planning is more than just meeting deadlines—it’s about structuring your finances efficiently to minimise liabilities and improve cash flow.
- This requirement, introduced in recent years, is designed to ensure tax liabilities are settled promptly.
- The tribunal confirmed that these mini umbrella companies fraudulently exploit the VAT Flat Rate Scheme.
- On Monday, the government announced a partial reshuffle, with Darren Jones, formerly Reeves’s deputy, being given a key No 10 role by the prime minister.
- By familiarising yourself with the tax year structure, filing deadlines, and the PAYE system, and by seeking expert guidance, you can navigate your tax obligations with confidence and precision.
Married taxpayers in the US can file jointly, which often results in a lower tax liability than filing separately. The backbone of the UK’s approach to taxation is embodied in the income tax bands and rates, which are essential for managing UK income. ‘In starting a business from scratch you naturally have a lot of concerns. What sets them apart for us is their flexibility and understanding of our requirements. We are most definitely not their biggest client but it doesn’t feel like that. Brearley & Co Accountants has been the perfect find for all of our accounting needs and business advice and support.
So, whether you’re an experienced business owner or just starting to figure out the self-employed world, stay with us. We’re here to make sure that when it comes to tax, you’re clear on what to do and when to do it. Gilts are usually issued for a set period – for example five years, ten years or 30 years – and pay a regular interest-based income, called the ‘coupon’.
UK vs. US income tax rate comparison
Properties are classified into one of eight bands (A to H) based on their value on April 1, 1991. The United States imposes an estate tax on the transfer of a decedent’s assets before distribution to beneficiaries. Corporate taxation is a critical aspect of the economic landscape in both the United Kingdom and the United States. There are many different deadlines & possible extensions – TFX can keep you abreast. Brearley & Co has been established for nearly 40 years in Swinton, Mexborough, Dinnington, and Barnsley. We care for our client’s business and work closely to help them manage the compliance requirements and while adding value by providing proactive services.
C-Level executives or managers will have a different level of pre-approved spend from other staff. For employed individuals, the Pay As You Earn (PAYE) system operates within this cycle. Tax codes and deductions are applied by employers from April 6th through April 5th, determining the amount of income tax and National Insurance contributions withheld from wages.
- Any outstanding tax owed for the previous tax year, known as a balancing payment, and the first payment on account for the current tax year are due by January 31st.
- Married taxpayers in the US can file jointly, which often results in a lower tax liability than filing separately.
- We also offer expert VAT advisory services, helping businesses navigate complex VAT regulations, reclaim VAT efficiently, and choose the most suitable VAT scheme for their needs.
- Once you’ve reviewed everything, click “Download” or “Print” (available under “Statements”) to get a PDF of your tax overview.
Throughout the year, key financial and tax announcements will shape the economic landscape, influencing everything from personal taxation and business planning to pensions and benefits. Understanding these updates is essential for accurate payroll management, tax planning, and ensuring compliance with HMRC regulations. If you are new to self-assessment, you must register with HMRC by 5 October 2025 to ensure you are set up correctly and receive the necessary details to file your return. Failing to register on time can lead to unexpected tax demands and delays in processing returns. Understanding the key tax dates isn’t just about meeting deadlines; it’s about smart planning, staying ahead of the game, and making sure you’re making the most of your finances.
The tax month framework similarly helps employers consistency and accuracy in reporting by streamlining tax collection and compliance processes. Unlike the U.S. system, the UK does not grant automatic extensions for late submissions. Late filings are what is the uk tax year assessed by HM Revenue & Customs (HMRC) on an individual basis and only under certain conditions. In this article we look at what the UK tax year is, why the tax year isn’t the same as the calendar year and what you need to be aware of during each tax year.
The seemingly unusual start date of 6 April has historical roots dating back to the 18th century. Before 1752, the UK used the Julian calendar, and the new year began on 25 March (Lady Day). When the UK switched to the Gregorian calendar, an 11-day adjustment moved the start of the fiscal year to 5 April. Later, in 1800, an additional adjustment for leap years pushed the start date to 6 April, where it remains today. While this historical reasoning explains the timeline, it can sometimes confuse those unfamiliar with the UK’s tax system. Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 10 years of expertise in navigating complex tax matters.