Tax Year End 2025 26

This includes income from trading, investments, and the sale of assets like property or shares (known as chargeable gains). Corporation Tax is a tax paid by limited companies in the UK on their profits. For example, if your financial year ends on 31st December 2024, Corporation Tax must be paid by 1st October 2025. If you registered your company on June 15th 2024, your first company year would run from June 15th 2024 until June 30th 2025. Company accounts do not align with the standard UK tax year (6th April to 5th April). You can read our guide about company year end accounts on our website.

Newly self-employed individuals should also confirm whether registration deadlines apply to their circumstances. Common examples include unrecorded invoices, late expenses or interest received late in the tax year. Freelancers, landlords and individuals with mixed income sources should ensure that records for income and expenses are complete before 5 April.

• This is the standard cycle used for calculating income, expenses, and tax liabilities for individuals and businesses.
• The situation can be different depending on whether you’re a limited company director or a self-employed sole trader, we’ve covered both here.
• For example, if your company’s year end is 31st March 2025, your annual accounts are due 31st December 2025.
• Don’t forget that any dividends must be paid from available company profits.
• Keep this document safe as it may be required when applying for loans or mortgages and can serve as proof of income when claiming certain benefits.
• 19/22 July – Deadline for payment of class 1A NIC (later date if paying electronically)

This resulted in the odd dates for our end-of-year tax return! People can set up notifications in the HMRC app to ensure they know when payments are due so they do not miss a deadline. HMRC said people can start their tax return, save it and revisit it as many times as they need to before they submit it. The deadline for the online Self-Assessment tax return is January 31, 2026.

Discover your true take-home pay with our self-employed tax calculator – see exactly what you’ll keep after tax, National Insurance, and expenses. Demystifying tax for businesses and individuals alike. You can also check out this helpful guide on key dates in the UK tax year here. As a basic rate taxpayer, your pension pot can be topped by £1,000 and it costs you £800.

From different taxes, limited company advantages/ disadvantages, how to pay yourself, and what your key filing requirements are. Interest on late payments will accrue from the day your payment becomes overdue until it is fully settled, even if you’re paying in instalments. Late payments may attract interest and penalties, so it’s important to meet the deadlines. For businesses using the annual accounting scheme, the filing deadline is two months after the end of the VAT accounting year. Businesses must file VAT returns one month and seven days after the end of each VAT period. Most businesses submit VAT returns quarterly, covering three-month periods that are specific to their registration date.

Wondering what expenses you can claim as a Sole Trader?

The CPS – a centre-right think tank, which used Office for Budget Responsibility inflation and wage growth forecasts for its calculations – said the chancellor was “raising taxes for millions of workers through the back door”. Rachel Reeves is “quietly hammering” workers with stealth taxes as a result of her budget last year, a thinktank has said. Rachel Reeves had criticised freezing tax thresholds in the past, as had been done by previous governments, but went ahead and did it herself in November. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. The new mansion tax – which the government says is a “high value council tax surcharge” – will also come into force from April 2028.

MTD Income Tax Return

This is calculated from how much you earned in the previous year and then split into 2 payments – one in January and one in July. A “Payments on Account” is an advance payment towards your tax bill for the following year. Employers deduct income tax and National Insurance through the PAYE (Pay As You Earn) system. By managing these dates well, you also keep your financial records in order, making it easier to handle future taxes and avoid last-minute rushes.

At the end of the tax year, you receive a P60 form summarising your earnings and tax payments. These dates apply consistently to all taxpayers, regardless of their income source or employment status. The tax year in the UK is a fixed 12-month period used by the government to assess and collect taxes for individuals, businesses, and self-employed professionals.

Junior ISA

Your tax-free allowance is therefore removed completely when your income is £125,140. However, when your income is above £100,000, your personal tax-free allowance is reduced by £1 for each additional £2 you earn above £100,000. Speaking of income tax, you can check out our tax rates and thresholds article for more information on the income tax rates. If you have an ISA, you’re given a tax-free allowance on your ISA amount each tax year, so when the tax year ends and a new one begins, this tax-free allowance will start again. I personally use Free Agent, an accountancy software website that tracks all my payments and deductions for me by being linked to my accounts.

Paper Tax Return Deadline

Bear in mind that you can’t apply for an extension just because of everyday challenges – the example HMRC gives is a situation such as a fire destroying your company records. Limited companies that file accounts to Companies House late are also fined. If you take longer than three months, the fine will start increasing, and the interest will keep accruing.

These are the monthly deadlines for payment to HMRC. The submission deadline for  your VAT return is 1 month and 7 days after the end of the VAT period. Your Self Assessment tax return and capital gains tax are required to be submitted to HMRC by the deadline of the 31st of January, or you could endure a fine. The deadline for submitting your paper tax return is the 31st of October.

The ISA allowance can’t be carry forward so if you don’t use your ISA allowance before the end of the UK tax year you lose it. The tax free element of an ISA is referred to as your ISA allowance and is worth £20,000 per person. Before a tax year ends thinking about what you could do to make the most of any available reliefs and tax free allowances can be really beneficial. Understanding what you need to do before the tax year end is vital to avoid the loss of valuable tax reducing reliefs and allowances.

It also estimates how much tax I will be due to pay based on my current earnings. These contributions must be made by the 22nd of each month (or the 19th if paying by post). Employers should also be aware of Real-Time Information (RTI) reporting deadlines, ensuring that accurate data is submitted on or before each payday. The deadline for submitting P11D forms is 6th July following the end of the tax year (5th April). These forms give a summary of an individual’s total pay and deductions for the previous tax year, including any taxable benefits. For instance, if your accounting period ends on 31st March, you need to settle your corporation tax by 1st January of the following year.

The surprising thing hundreds of people did with the last hour of 2025

This is particularly important if you expect a payment on account or if any part of your end-of-year tax return may be complex. Now is the perfect time to plan for any changes in income tax bands, National Insurance rates, or business tax obligations. Most VAT-registered businesses submit their VAT returns and payments to HMRC on a quarterly basis. In this article, we’ve listed all the key tax dates and deadlines you need to know if you’re self-employed or running an incorporated business. “If you are a landlord or a sole trader with more than £50,000 of income, from next April, you’re going to have to make quarterly tax returns.” Being aware of key tax return dates means you’re less likely to incur fines too.

In addition, some business shares that were previously exempt from IHT will now be taxed at 20%, meaning more estates are likely to fall within scope. Those facing an inheritance tax (IHT) bill will be able to pay it in equal annual instalments over 10 years, with no interest charged. You’ll still be able to pass on up to £2.5m of qualifying farm or business assets tax-free, but any value above this will be taxed at 20%. Many company directors currently take dividends instead of a salary because dividends are taxed at lower rates, but this gap will narrow once the new rates come into force. This year will bring several tax changes that may impact your pocket, from higher dividend tax to changes to inheritance tax affecting farms, businesses and some gifts. With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.

• To check your exact annual allowance, please consult the latest guidance from HMRC on Pension Tax Relief and Allowances.
• Employers are expected to file employer annual returns online no later than April 19th following the end of the tax year.
• Missing the submission deadline usually results in an automatic £100 penalty.
• Being aware of key tax return dates means you’re less likely to incur fines too.
• Any income or gains received within this window form the basis of the annual assessment for Self Assessment, PAYE reconciliation or other HMRC calculations.
• If you’re a higher rate taxpayer, and you make contributions personally, your pension pot can be topped up by £1,000 and it would cost you £600 after tax relief.

Business tax changes in 2026

To find out more on running payroll, check out the HMRC website. If the deadline is not met, you could receive a fine from HMRC. The date of the 19th is for submission end of uk tax year of older methods, such as cheques by post, to allow HMRC enough time to process these.

While you’re thinking of future investments, you may want to check if you could make any payments into an ISA or other tax-efficient savings which also have limits on what you can pay in each tax year. If you run a limited company then making payments through your limited company is usually more tax-efficient. These key dates ensure taxpayers remain compliant with HM Revenue requirements, avoiding penalties for late submissions or payments. Because the main income tax thresholds are frozen until 2031, some taxpayers may also find themselves pushed into the more expensive 35.75 per cent bracket as their total income grows over time.