Happy New Tax Year

Happy New Tax Year image

The 6th of April heralds the beginning of UK the tax year.

Whereas most countries around the world align their fiscal years with the calendar year, in the UK it’s an oddity that is very British and links back to medieval times. For most clients the new tax year seems of little consequence – all the activity focuses on the final rush to do an investment before the end of the year on 5th April. If that’s you, then this year I urge you to turn a new leaf and embrace actions at the beginning of the new tax year:

  • You’ve got 365 potentially tax free days ahead of you – why not make your ISA investment on at the beginning of the tax year and enjoy tax free returns for the whole year?
  • The same goes for pension – get some investment in early.
  • Do you have capital gains to realise? There’s another £12,300 allowance waiting to be used!
  • If your business year ended on 5th April or perhaps 31st March – don’t hang around till January next year to do your return – find a rainy day in April (let’s face it there will be one) and settle down to do your accounts or tax return. Your deadline dates for tax return submission to HMRC are listed below – but if you can submit them now, you know what your tax due is for the next twelve months and you can put your feet up and enjoy the summer.
    • 31 October 2021 (midnight) - Deadline for paper self-assessment returns for 2020/21 tax year.
    • 30 December 2021 - Deadline for online submission of self-assessment tax returns for the year ending 5 April 2020, if you want HMRC to collect tax through your tax code where you owe less than £3,000 and you already paid tax through PAYE system.
    • 31 January 2021 (midnight) - Online self-assessment tax returns for 2019/20 tax year must be submitted by this date. 
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