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.
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:
No – that would be too easy! The financial year in the UK is from the 1st April to the 31st March of the following year and these are the dates that the UK government uses to introduce new regulations brought in under the spring or autumn budgets.
Of course! We advise that you start a comprehensive spreadsheet to keep track of your taxable income and relevant expenses throughout the year in order to make your tax return more straightforward. This can be done on an Excel spreadsheet or Google sheet to keep things simple! Contact our team for more advice today!