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The UK Tax Year 2020-2021 – Dates to Remember to Avoid Penalties
Important Dates In The UK Financial Year UPDATED – 24th February 2021: 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. The new financial year begins on the 6th April 2021, which means you could be due a tax refund from HMRC.
Click the banner below to find out if you are due a refund or use our UK tax refund calculator.
Key Dates for the UK Tax Year 2020-2021
The current tax year is 2020-2021 and the following tax year will be 2021-2022 which will start on April 6th 2021.
Important UK tax date: April 6th
April 6th 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: 2017-18 2018-19 2019-20, 2020-2021
Important UK tax date for Self Employed people and freelance professionals – October 5th
You must register for Self Assessment tax return by the 5th of October, which follows the end of a tax year that you need to send a tax return for. For the 2020/21 tax year, for instance, you must have registered by 5 October 2021. Since it usually takes 20 working days for the registration process to complete, starting the process by 5 October will give you time to submit your self assessment tax return online by the 31st January 2022 deadline for online return.
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.
Important UK tax date for UK Self Assessments: December 30th
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.
Important UK tax date for Self Assessment tax filing: January 31st
If you file your self assessment tax online, the date to remember for paying your UK tax and filing your tax return is the 31st of January. Online tax returns must be completed and submitted to HMRC by the 31st January each year. For the 2020/21 tax year, tax return must be filed online by 31 January 2022. Before midnight of the 31st January, you must pay the tax you owe, which is basically the same date as when you file your online tax return. It’s a good idea to file your Self Assessment tax return soon after April 5th to allow you sufficient time to pay what you owe to HMRC.
Important UK tax date: April 5th
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 returns, there are basically two key 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 a 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 a tax return 3 months late.
- You will be charged £300 or 5% of the tax you owe, whichever is greater, if you file a tax return 6 months late.
- You will be charged another £300 or 5% of the tax owed, whichever is greater, if you file a 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 UK based tax agents.
Do You Need to Submit a Self Assessment Tax Return?
Taxback.co.uk are UK based tax agents who can assist you with filing your Self-Assessment tax returns. To start your Self-Assessment return you can use our online filing system. Once you complete your application form, one of our team will be in touch to notify you of the outcome and/or if we require any further information.