What is the UK tax year?
Published on February 17, 2023
Updated on February 20, 2025
by Clark Stott
Reviewed by: Aya Takriti
Table of Contents
What Americans need to know about the UK tax year 2025?
As a US expat in the UK, understanding the UK tax system is crucial to avoiding double taxation and ensuring compliance with both His Majesty’s Revenue and Customs (HMRC) and the Internal Revenue Service (IRS). For one, the UK starts its tax year later in the calendar than the US.
What date does the UK tax year start and end?
The tax year in the UK starts on 6 April 2024 and ends on 5 April 2025, unlike in the US, which follows the calendar year beginning on January 1 and ending on December 31.
Despite the UK tax year ending later than the US tax year, most US citizens living in the UK will file their UK taxes first and then file their US tax return. This makes it easier to claim Foreign Tax Credits and in turn, the US Child Tax Credit refund.
There are historical and practical reasons behind the UK tax year starting on 6 April each year. Since it was established around the 1700s, Britains have decided to continue this to not disrupt the processes in the tax administration and payroll systems.
Because of this difference, income earned in overlapping periods might be reported in different tax years for US and UK tax purposes, which could potentially affect tax filings and foreign tax credits.
What are the tax filing deadlines in the UK?
Here are the various deadlines for filing tax returns in the UK, including deadlines for self-assessment, limited companies, and VAT returns:
2024-2025 UK tax deadlines:
|
Date |
Deadline |
|
April 06, 2024 |
Start of the 2024-2025 tax year |
|
May 07, 2024 |
VAT return deadline for the quarter ending March 31, 2024 |
|
May 31, 2024 |
Issuance of P60s to employees for the 2023-2024 tax year |
|
July 06, 2024 |
Deadline for the P11D forms submission (expenses & benefits for employees) |
|
July 19, 2024 |
Class 1A NICs payment deadline (on benefits reported in P11Ds) |
|
July 31, 2024 |
Second ‘Payment on Account’ due for 2023/24 Self Assessment taxpayers |
|
August 07, 2024 |
VAT return deadline for the quarter ending 30 June 2024 |
|
October 05, 2024 |
Self Assessment registration deadline (for new taxpayers & self-employed) |
|
October 31, 2024 |
Paper tax return submission deadline for 2023-2024 Self Assessment |
|
November 7, 2024 |
VAT return deadline for the quarter ending September 30, 2024 |
|
December 30, 2024 |
Deadline to file Self Assessment online if you want tax collected via PAYE tax code (if the tax owed is <£3,000) |
|
January 31, 2025 |
|
|
February 7, 2025 |
VAT return deadline for the quarter ending December 31, 2024 |
|
April 5, 2025 |
|
|
April 6, 2025 |
Start of the 2025-2026 tax year |
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
Connect with over 10,000+ expats today!
Embarking on an international journey shouldn’t mean navigating the complex world of US taxation alone. If you’re living and working abroad, our friendly, supportive Expat Tax Online Help Facebook group is here to assist. We’ve designed a community that serves as a comprehensive guide and resource platform tailored for US expats.
Are there periodic deadlines in the UK?
Yes, here are some of the deadlines to watch out:
- 19th of every month: Deadline for PAYE & NICs payments (non-electronic).
- 22nd of every month: Deadline for electronic PAYE & NICs payments.
- 60 days after selling a UK property: Capital Gains Tax (CGT) report & payment due.
- 9 months and 1 day after company year-end: corporation tax payment deadline.
- 12 months after company year-end: Corporation tax return deadline.
How do I know if I need to complete a self-assessment tax return?
A self-assessment tax return is usually completed by self-employed individuals. However, if you’re an employee with other sources of income, you might also need to complete one.
Here are some scenarios in which you need to file a self-assessment tax return:
- You are a partner in a business partnership.
- You earn over £100,000 (high earners).
- You have untaxed income (side income) aside from employment income.
- You want to claim certain tax reliefs (Higher rate tax relief on pension contributions or work-related expenses over £2,500).
- You have capital gains over the annual exemption (£6,000 in 2024).
What are the UK income tax rates for 2024-2025?
Here is the 2024-2025 income tax rates:
|
Band |
Taxable income |
Tax rate |
|
Personal allowance |
Up to £12,570 |
0% |
|
Basic rate |
£12,571 to £50,270 |
20% |
|
Higher rate |
£50,271 to £125,140 |
40% |
|
Additional rate |
over £125,140 |
45% |
What is the deadline for claiming a tax refund?
The general rule is that the deadline for claiming depends on the tax year in which the overpayment occurred. A taxpayer needs to claim the refund within 4 years from the end of the tax year in which they overpaid tax.
In this instance, for tax year 2023-2024 the deadline would be April 05, 2028. For tax year 2024-2025, the deadline would be April 05, 2029.
Are there different tax year dates for different entities?
Yes, in the UK, different entities follow specific tax year dates and deadlines applicable to different entities such as limited companies, LLPs, and self-employed individuals. Here is a general guide:
- Individuals & self-employed: follow April 06 to April 05.
- Companies (corporation tax): Determined by the company’s accounting period.
- VAT: based on quarterly periods.
- Government accounting: runs from April 01 to March 31.
What does the self-assessment process look like?
The process of self-assessment is a system used by HMRC to collect income tax from self-employed individuals, landlords, and those with untaxed income. For individuals, self-assessment includes registration, filing methods, and relevant deadlines.
How can I prepare for the end of the tax year?
As a US expat, preparing for the end of the tax year on April 5 is crucial to individuals and businesses alike to ensure compliance and optimize tax outcomes. Here are some of the ways to prepare for the end of the tax year:
- Double-check your UK tax residency status: If you’re a UK tax resident, you are taxed on worldwide income. If you are a non-resident, you only pay UK tax on UK-source income.
- Gather relevant documents: Collect all UK income records, such as the P60, P11D, invoices, receipts, and bank statements, for self-assessment or PAYE reconciliation.
- Maximize available allowances: Take advantage of the UK tax-free allowances such as the Personal Allowance, Dividend Allowance, or ISA Allowance before they reset.
- Prepare for US tax filing obligations: Don’t forget your tax obligation in the US. As a US citizen, you are still required to file a US tax return.
Are there penalties for late filing and payment?
Yes. Unfortunately, the HMRC will penalize you for late submission. If you miss the Self Assessment tax return deadline even by one day, you will incur a £100 fixed penalty, even if no tax is due.
If, after 3 months, you still fail to file your tax return, there is an additional £10 per day for up to 90 days (max £900). For 6 months, there is an extra of £300 or 5% of the tax due (whichever is higher) and another £300 for over 12 months.
For failure of tax payment, there is a penalty of 5% of unpaid tax on the first 30 days. Another 5% of unpaid tax will be incurred for failure over 6 months and another 5% for those over 12 months.
Spread the word. Please share… 👉
