Many self-employed workers and sole traders find themselves asking, when does the tax year end?. It’s a valid question. Although calendar years run to a logical pattern, the UK tax year dates seem confusing and arbitrary at first glance.
The reason why is a small history lesson in itself. In 1752, the UK calendar was more than 11 days out of alignment with the rest of Europe. To fix this, the government simply removed 11 days from the calendar this shifted the tax year-end forward permanently. A further one-day adjustment was made in 1800, resulting in the odd dates for your end of year tax return.
Nowadays, the tax year is a 12-month period recognised as a year’ in itself for taxation. For year-end accounting purposes, self-employed workers and sole traders need to have their accounts fully prepared, so they’re ready for filing and submission. So, when is the end of the tax year?
When is the end of the tax year?
For any self-employed or sole traders wondering, when does the UK tax year end? you should keep March in mind for year-end preparation. Once March comes around, self-employed workers and sole traders should be firmly set on the end of the tax year.
The UK tax year runs from 6th April 5th April the following year. This means that by 5th April every year, you must be ready to submit your accounts to HMRC. But what exactly does it mean to submit your accounts and how should you prepare?
What do I need to do?
At the end of the tax year, you will be sent a notification to file your self-assessment tax return for that year. But, while the year ends on 5th April, you don’t actually need to file your tax return for that year until:
- 31st October the same year for a paper return
- 31st January the following year for an online return
That said, it’s still crucial to prepare for the end of the tax year. Make sure you have all invoices, statements and bills from the tax year. Organise them in date order, so you can easily find any particular invoice or order form when needed.
Doing all your tax work in one go is not the way to go about things. That’s especially the case when you consider all the receipts for business-related purchases. If you want to keep things running smoothly, dedicate an hour or so every week to organise your documents. This will keep you on top of business costs, tax submissions, overdue invoices and more.
Remember, the year-end return includes all business transactions, such as travel costs, phone bills and office equipment, which may lower your tax bill. It might take a while, but it will be worth it when it comes to filing your tax return.
Planning ahead is the best way to reduce the stress of tax returns, but it still leaves you with a considerable task on your plate. Keeping track of invoices and receipts is no easy feat when trying to run a business. If this sounds like too much of a headache, it’s a good idea to work with a trusted self-assessment tax accountant to take the stress out of the year-end process for you.
What other dates do I need to know?
When you’re first beginning to understand the UK tax landscape, it can look like a jumble of dates. Fortunately, there is a long-standing system in place you just have to be organised and keep on top of deadlines, such as:
- For businesses that charge VAT, you’ll need to remember your closest VAT deadline These typically run monthly, quarterly or yearly.
- For limited companies, corporation tax is due after you file your company accounts each year. Companies have different financial year dates, so bear in mind your deadline.
Work with experts
Year-end preparation should begin in March every year for self-employed and sole traders, for submission by 5th April. You’ll need to submit all business invoices, receipts and tax information, so keep on top of everything throughout the year. Get in touch with UWM today for expert advice on your tax submission.
