The UK Tax Year: Dates to Remember to Avoid Penalties
The UK Tax Year runs from 6 April to 5 April of the next year. Within this period, all of your income, whether earned or remitted in the UK, may be subject to tax. Whether you owe tax or not, there are important dates that you need to always keep in mind.
This is the start of the UK Financial Year!
You must register for Self Assessment tax return on this date, which follows the end of a tax year that you need to send a tax return for. For the 2013/14 tax year, for instance, you must register by 5 October 2014. Since it usually takes 20 working days for the registration process to complete, starting the process by 5 October will give you time to send your tax return by 31 October deadline for paper return or 31 January deadline for online return.
Tax return on paper must be completed and submitted to HM Revenue and Customs (HMRC) by 31
October of the end of the following tax year. For the tax year 2013/14, for example, the tax return should be filed by 31 October 2014.
If you are eligible to pay Self Assessment bill through your PAYE tax code, you can send your online return by 30 December. HMRC will then automatically collect the tax you owe from your income and pension.
If you file online, this is the date to remember. Online tax return must be completed and submitted to HMRC by 31 January. For the 2013/14 tax year, tax return must be filed online by 31 January 2015. On midnight of 31 January, you must pay the tax you owe, which is basically the same date as when you file your online tax return.
The end of the UK Financial Year!
But this only applies if your tax bill is less than £3,000, you already pay tax through PAYE, or your online tax return is due on 30 December.
When it comes to tax return, there are basically just two dates you should remember – 31 October and 31 January, depending on whether or not you file on paper or online, respectively. Of course, it is still possible to forget about filing tax return on time. When this happens, you must be prepared to face the penalties.
- Even if you do not owe any, tax you will be charged a penalty. As long as you receive a letter from HMRC telling you to file your tax return, you must comply even if you do not owe any tax.
- You will be charged a penalty of £100 that is non-refundable.
- You will be charged a penalty of £10 per day, up to a maximum of £900, if you file tax return 3 months late.
- You will be charged £300 or 5% of the tax you owe, whichever is greater, if you file tax return 6 months late.
- You will be charged another £300 or 5% of the tax owed, whichever is greater, if you file tax return 12 months late.
Then, there are exceptional circumstances where you will be charged a penalty of up to 100% of the tax due.
Since there are also penalties when you fail to pay tax on time, it is best to set a reminder for these dates. Better yet, work with tax experts who will remind you what you must do to avoid penalties.
Got any questions? Get in contact with our tax agents.