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when does tax year start 2025

when does tax year start 2025

2 min read 02-12-2024
when does tax year start 2025

The tax year is a crucial period for individuals and businesses alike. Understanding when it begins is the first step in effective tax planning. This article clarifies when the 2025 tax year starts and provides essential information to help you prepare.

The 2025 Tax Year: Key Dates

The tax year in the UK always runs from 6 April to 5 April of the following year. Therefore, the 2025 tax year will run from 6 April 2024 to 5 April 2025. This is consistent with previous years and remains unchanged.

Understanding Tax Year vs. Calendar Year

It's important to differentiate between the tax year and the calendar year. The calendar year runs from January 1st to December 31st. Because the tax year begins in April, your tax return will cover income earned between April 6th and April 5th of the following year.

Preparing for the 2025 Tax Year

While the tax year begins in April 2024, proactive planning is essential throughout the year. Here's how to prepare:

1. Gather Your Financial Documents

Throughout the year, keep accurate records of all income and expenses. This includes:

  • Payslips: Keep these records to verify your income.
  • Bank statements: Track all transactions related to income and expenses.
  • Investment records: Document all gains and losses from investments.
  • Receipts: Retain receipts for all deductible expenses. This is crucial for self-employed individuals and those claiming tax reliefs.

Organizing these documents will greatly simplify the tax return process when the time comes.

2. Understand Tax Allowances and Reliefs

Familiarize yourself with available tax allowances and reliefs. These can significantly reduce your tax liability. Examples include:

  • Personal Allowance: The amount of income you can earn tax-free.
  • Marriage Allowance: Allows higher-earning spouses to transfer part of their personal allowance to lower-earning spouses.
  • Child Benefit: Tax credits for families with children.
  • Pension contributions: Tax relief is available on pension contributions.

Understanding these allowances will help you optimize your tax position. Government websites and tax advisors can provide further detail.

3. Consider Professional Tax Advice

If you have complex financial circumstances, such as self-employment, rental income, or significant investments, consider seeking professional tax advice. A tax advisor can help you navigate the intricacies of tax law and ensure you're making the most of available allowances and reliefs.

4. Plan for Self-Assessment

If you're self-employed or a company director, you'll need to complete a self-assessment tax return. The deadline for submitting your 2025 tax return (covering the 2024-2025 tax year) will be in January 2026. Starting early will reduce stress during the busy tax season. The HMRC website will provide precise dates closer to the time.

Key Takeaways

Remember, the 2025 tax year begins on April 6th, 2024, and ends on April 5th, 2025. Proactive planning throughout the year is crucial for a smooth and efficient tax filing process. Keep organized records, understand available allowances, and consider seeking professional advice if needed. By understanding these key dates and taking these proactive steps, you can effectively manage your tax obligations for the 2025 tax year.

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