Fiscal Year

The Fiscal Year is the 12 month period that is used to report and forecast in accounting. In the UK, it’s also commonly referred to as the tax year and runs from the 6th April until the following 5th April.

How does the fiscal year work for paying tax?

You pay your taxes on any undeclared income – any income that you don’t get via a PAYE salary. This includes individuals who are self-employed or anyone who pays tax via a Self Assessment. You pay this tax via a tax return by 31st January – the online tax return deadline.

You pay tax based on your earnings each fiscal year, so between 6th April – 5th April. But to be confusing, your tax bill isn’t due until the 31st January of the following year. Here’s an example of the tax bill timeline:

1. You earn £32,000 from self-employed income between 6th April 2023 – 5th April 2024
2. This is the 2023/24 tax (fiscal) year
3. Your expenses for this period total £6,000
4. Your taxable income is £26,000 (£32,000 – £6,000)
5. You pay your 2023/24 tax bill by 31st January 2025