Tax Year End: What you need to know

When is the tax year?

The tax year begins on April 6^th and ends on April 5^th the following year. The origins of the tax year are historical, and there’s more detail (and useful trivia) in our article here

What are the key tax year dates?

You need to tell HMRC by the 5^th October if you intend to file a tax return for the 2023/24 tax year. This means you need to register for self-assessment.

When do you need to file your tax return?

If you’re filing a paper tax return, you’ll need to do that by 31^st October 2024. If you’re filing electronically, you have until 31^st January 2025.

When do you need to pay tax owed?

You need to pay the tax you owe for the 2023/24 tax year by midnight on the 31^st of January 2025.

If you file your return late, or miss the payment date, or you ignore requests from HMRC to file a return or exempt yourself from self-assessment, you could be fined.

What are the ISA limits?

In both 2023/24 and the current tax year, the individual ISA limit was £20,000 and Junior ISAs were capped at £9,000.

How can financial planning reduce tax?

Financial planning is all about protecting and growing your wealth to hit your financial objectives.

If you’ve ever sat down to complete a tax return, you’ll know how many different taxes and allowances there are to consider, but a financial planner can help with all of that to ensure you’re not missing anything. We also have relationships with accountants so if your circumstances are particularly complex, we can work with an accountant to provide a complete solution.

We comprehensively analyse your financial circumstances and build a plan to get you to your objectives. Within that, we will advise you on the most tax-efficient way to invest and manage your money.

We also work with contractors, company directors and the self-employed to make sure their money is working as hard as it can.

Here are a few aspects of it:

Allowances

The tax year presents a number of opportunities to limit the impact of tax on wealth through ISAs and pension savings, as well as through historic protections such as the Annual Allowance’s “carry forward” feature.

Remember, you can contribute up to £60,000 to your pension in a tax year without paying tax on your contributions (assuming you have not already started drawing your pension). However, your annual allowance amount can change depending on your individual circumstances and especially for high earners.

There’s also Capital Gains Tax (CGT) to consider. At the time of writing, everyone has a £3,000 CGT allowance (it was £6,000 in 2023/24) so this can be used to offset against gains made in the tax year.

Reliefs

There are numerous reliefs and deductions to claim as well. Pension top ups, charitable donations, allowable expenses for the self-employed, to name a few.

If you have savings outside of an ISA, you receive the first £1,000 of interest tax-free if you’re a basic rate taxpayer. For higher rate taxpayers it’s £500 and there’s no tax-free interest for top rate taxpayers.

Getting in touch

If you would like to arrange a free initial consultation to discuss tax year end as well as your overall financial plans, please book an appointment.

IMPORTANT: The Financial Conduct Authority does not regulate tax planning.