The UK Tax Year 2019-2020 – Dates to Remember to Avoid Penalties
UPDATED: 2nd April 2020
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. It’s a good idea to plan ahead by using trusted payroll software for UK businesses as this can save you both time and money when filing your end of year tax returns.
Key Dates for the UK Tax Year 2020-2021
The current tax year is 2019-20 and the following tax year will be 2020-21
April 6 is this is the start of the UK Financial Year!
You can claim up to 4 years previous tax if you have not claimed before.
The tax years in the UK you can claim are:
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 2019/20 tax year, for instance, you must have registered by 5 October 2020. 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 online by the 31st January 2021 deadline for online return.
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 2018/19 tax year, tax return must be filed online by 31 January 2019. 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.