UK tax year guide 2024-2025: Planning ahead for expats

If you’d like to find out more about how to make the most of your investments in time for the end of the tax year, please get in touch. You can carry forward unused annual allowance from an earlier tax year as long as you were a member of a registered Pension scheme in that tax year. For US citizens who are new taxpayers in the UK or are self-employed, you can register for Self-Assessment until October 31, 2025. By this time, you should have your records and forms ready to file with the HMRC.

Our helpful UK tax date calendar allows you to look through and add any relevant dates to your diary – making sure you never miss that important submission. If you’re unsure what your tax code means or how to find it, check out our helpful tax codes guide. There is a second payment deadline of 31 July if you make payments towards your bill – these are known as ‘payments on account’. HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the deadline. ???? If you have questions about the UK tax year or need advice on your personal or business tax situation, get in touch with our expert team. Simply use the enquiry form at the bottom of this page, and we’ll be happy to help.

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• For online submissions, the deadline is January 31st of the following year.
• A tax year provides the framework within which income is assessed, taxes are calculated, and various allowances and reliefs are applied.
• This includes income from employment, pensions, rental properties, savings interest, and dividends.
• Our team works proactively to identify opportunities for savings while keeping your business compliant with the latest regulations.

Once they switched to the Gregorian Calendar in 1752, there was still a discrepancy of 11 days between the old calendar and the new. In the mid-1700s, the British Empire was still using the Roman Julian Calendar. They were out of sync with the rest of Europe, who had already adopted the Gregorian Calendar in the 1500s. They celebrated the New Year around 25th March, which was also the start of the financial year. Filing taxes is an annual ritual in both the United Kingdom and the United States, but the systems and procedures differ significantly.

This rule effectively creates an income tax band of 60% for a portion of your earnings between £100,000 and £125,140. Income tax is calculated on your earnings — employed or self-employed — in tiers. Income tax is charged on most types of income but tax allowances protect some from the taxman.

Council tax and other property taxes in the United Kingdom

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Corporation Tax Deadlines

For businesses offering benefits such as company cars, health insurance, or expense reimbursements, P11D forms must be submitted to HMRC by 6 July 2025. If inflation remains high, pensioners and benefit claimants will see a larger-than-usual uplift, but businesses may also face higher costs due to rising wages and operational expenses. Employers must ensure payroll systems are updated accordingly to reflect the new rates from 1 April 2025. These changes will have an impact on payroll costs for businesses that employ younger workers, particularly in industries such as retail, hospitality, and construction. These changes mean business owners and investors may need to reconsider the timing of asset disposals to mitigate tax liabilities.

• In the UK, married couples are required to file individual tax returns; joint filing is not permitted.
• The adjustment aimed at aligning the fiscal period more closely with the new calendar.
• Use HMRC’s online tools to double-check calculations, and if you’re audited, respond promptly—delays can escalate penalties to 100% of the tax owed.
• For businesses offering benefits such as company cars, health insurance, or expense reimbursements, P11D forms must be submitted to HMRC by 6 July 2025.

The first of these days – 25 March – became the start of the financial year. Over time, with the switch from the Julian calendar to the Gregorian calendar and the axing of a few days to line everything up, the start of the tax year moved to 6 April. We provide customised summaries of UK income by calendar year based on workdays to support double tax relief claims. Maintaining accurate records ensures you can claim all eligible deductions and avoid penalties. The app is designed to cater to all types of taxpayers, whether self-employed, employed, or business owners.

January 2026

Keeping fuel costs stable provides some relief at a time when other costs, such as National Insurance and wages, are increasing. Additionally, a further increase has already been confirmed for the following tax year, with rates set to rise again to 18% from 6 April 2026. The CGT rate for Business Asset Disposal Relief (previously Entrepreneurs’ Relief) will increase from 10% to 14%, raising the tax burden on eligible business sales. Changes to Capital Gains Tax (CGT) are set to impact business owners and investors, particularly those planning to sell assets. The ‘yield to maturity’ is the annual return you would get from the gilt at the price paid for it, if you held it till the end date.

Car finance compensation should be paid next year

You can also opt to do it through a self-assessment tax return if you’re already registered and file tax returns anyway. The amount of money held in savings does not directly impact your personal allowance for income tax. But you might have to pay income tax on interest received from savings. The personal allowance – currently £12,570 – is the amount of earnings you can receive without paying any income tax at all. The Pie Tax App offers an intuitive way to keep track of your tax obligations.

If you suspect mini umbrella companies are involved, mention it in your referral. You can file your own self-assessment tax return or enlist the help of an accountant to do it on your behalf. It’s important to have a keen understanding of what you will owe to ensure you keep enough back to cover the bill.

Income tax rates in the UK

Use the total income and tax paid to assess your effective tax rate—e.g., Sarah’s £5,000 on £35,000 is 14.3%, hinting at potential reliefs. For self-employed like Ahmed, compare profits with expenses to optimise next year’s return. Lenders often request SA302s for mortgages, so download yours to prove income stability. Next up is the tax deducted section, which shows how much income tax you’ve paid.

If a portion of this isn’t used, the allowance is lost and reset to meet the criteria set by the government for the next tax year. Maximize Tax Allowances Each tax year resets your eligibility for various allowances, such as the personal allowance, CGT exemption, and ISA allowance. Planning your finances to make full use of these allowances can significantly reduce your tax what is the uk tax year burden. Dig into the “Tax reliefs and deductions” section to see applied allowances, like the Personal Allowance (£12,570 unless tapered above £100,000) or Marriage Allowance (£1,260 transfer). If you’re Tom, married with a low-earning spouse, you might see a £252 tax reduction.