What is a Tax Period - UK Tax Dates and Deadlines

A tax period is a set timeframe for calculating and reporting taxes. In the UK, different taxes have specific periods, affecting individuals, businesses, and employers. Understanding tax periods helps with accurate tax filing, avoiding late penalties, and managing cash flow effectively.

For individuals, the UK tax year runs from 6 April to 5 April of the following year. Self-employed individuals and those filing self-assessment returns must report their income and expenses within this period. Businesses have different tax periods, depending on corporation tax, VAT, and PAYE requirements.

Knowing what tax period is helps you staying compliant with HMRC. It helps businesses and individuals keep track of deadlines, file correct tax returns, and plan finances better.

A tax period is the set timeframe used to calculate, report, and pay taxes. In the UK, different types of taxes follow specific tax periods, depending on whether they apply to individuals or businesses. These periods determine when tax returns must be submitted and when payments are due.

By having clearly defined tax periods, the government can accurately assess tax liabilities and maintain an organised tax system.

Individuals in the UK follow a set tax year for reporting and paying taxes. The tax period for self-assessment runs from 6 April to 5 April of the following year. Employees paying tax through PAYE have a different system, where tax is deducted automatically from their salary.

Self-Assessment Tax Year (6 April – 5 April)

The self-assessment tax year in the UK starts on 6 April and ends on 5 April the following year. Self-employed individuals, landlords, and those with additional income outside PAYE must report their earnings within this timeframe.

PAYE Tax Period for Employees

PAYE (Pay As You Earn) is the system used by employers to collect income tax and National Insurance from employees' wages. Unlike self-assessment, employees do not need to file tax returns unless they have additional untaxed income.

Key points about PAYE tax periods:

• Tax is calculated and deducted every time an employee is paid, whether weekly or monthly.
• Employers submit payroll records to HMRC using Real-Time Information (RTI).
• The tax year for PAYE follows the 6 April – 5 April cycle.

If too much or too little tax is deducted, HMRC sends a tax refund (rebate) or a tax bill after the tax year ends. Employees can check their tax code and payslips to track deductions.

Businesses in the UK follow different tax periods depending on the type of tax they need to pay. Corporation tax, VAT, and PAYE each have their own timelines, which affect reporting and payment deadlines. Understanding these tax periods helps businesses manage cash flow, meet HMRC requirements, and avoid penalties.

Corporation Tax Period

A company’s corporation tax period usually aligns with its accounting year, which differs from the standard tax year (6 April – 5 April). The accounting year is set when the company is registered with Companies House.

Key points about corporation tax periods:

• The tax period runs from the company’s incorporation date and lasts 12 months.
• Corporation tax returns must be filed within 12 months of the end of the accounting period.
• The corporation tax bill must be paid within 9 months and 1 day after the end of the accounting period.

For example, if a company’s financial year ends on 31 March, its corporation tax return is due by 31 March the following year, and payment is due by 1 January.

VAT Return Periods

VAT-registered businesses must file VAT returns based on their chosen reporting cycle. There are three main VAT schemes:

• Quarterly VAT Returns – The most common option, where businesses report VAT every three months.
• Monthly VAT Returns – Used by businesses that reclaim VAT often or want to spread payments more evenly.
• Annual VAT Accounting Scheme – Allows businesses to file one VAT return per year, with advance payments made throughout the year.

VAT return deadlines are one month and seven days after the end of the reporting period. For example, if a business follows a January – March VAT quarter, the return and payment are due by 7 May.

Employer PAYE Tax Periods

Businesses that employ staff must deduct income tax and National Insurance through PAYE (Pay As You Earn). The PAYE tax period follows the standard 6 April – 5 April tax year, but payments and reporting are handled monthly or quarterly.

• Monthly PAYE Payments – Businesses with large payrolls must submit PAYE payments by the 22nd of each month (or 19th if paying by post).
• Quarterly PAYE Payments – Small businesses with lower PAYE liabilities can pay every three months, with deadlines on the 22nd of July, October, January, and April.

Employers must also submit payroll details to HMRC using Real-Time Information (RTI) every time they pay staff.

Knowing tax year dates and deadlines is important for individuals and businesses. Missing tax dates can lead to penalties, interest charges, and unnecessary stress. Below is a breakdown of key tax deadlines and what happens if they are missed:

Important Tax Deadlines for Individuals

Self-Assessment Tax Deadlines

Self-employed individuals, landlords, and those with additional income outside PAYE must file a self-assessment tax return within the following deadlines:

• 5 October – Deadline to register for self-assessment if it’s your first time.
• 31 October – Deadline for paper tax returns.
• 31 January – Deadline for online self assessment tax returns and payment of any tax due.
• 31 July – Second payment on account deadline (if applicable).

PAYE Tax Deadlines for Employees

Employees who pay tax through PAYE do not need to file tax returns unless they have additional untaxed income. However, employers must submit payroll records regularly to HMRC:

• 6 April – 5 April – PAYE tax year.
• 22nd of each month – Deadline for monthly PAYE payments (or 19th if paying by post).
• Quarterly PAYE payments – For small businesses, payments are due by the 22nd of July, October, January, and April.

Important Tax Deadlines for Businesses

Corporation Tax Deadlines

• 9 months and 1 day after the accounting period ends – Corporation tax payment deadline.
• 12 months after the accounting period ends – Corporation tax return submission deadline.

VAT Return Deadlines

VAT-registered businesses must file VAT returns based on their reporting cycle:

• Quarterly VAT Returns – Due one month and seven days after the end of the VAT period.
• Monthly VAT Returns – Due on the same schedule as quarterly returns.
• Annual VAT Returns – Due at the end of the business's annual accounting period.

Consequences of Missing Tax Deadlines

Failing to meet tax deadlines can result in:

1. Late Filing Penalties
   • Self-assessment: £100 fine immediately after the deadline, with higher fines after three months.
   • Corporation tax: Failure to file on time results in a £100 penalty, increasing if further delayed.
   • VAT: Late returns may lead to a surcharge based on the business’s VAT turnover.
2. Interest on Late Payments
   • HMRC charges interest on unpaid tax from the due date until full payment is made.
3. Additional Charges for Ongoing Delays
   • Self-assessment: After 6 months, an extra penalty of 5% of the unpaid tax is added.
   • VAT: Repeated late payments can lead to penalties of up to 15% of the unpaid VAT.
4. Debt Collection and Legal Action
   • Persistent non-payment may lead to HMRC using debt collectors, freezing bank accounts, or taking legal action.

Understanding your tax period helps you stay organised and compliant with HMRC requirements. Here’s how to find the right tax dates:

1. Steps for Individuals and Businesses

• Check the type of taxes you are responsible for, such as income tax, corporation tax, or VAT.
• Keep your financial year dates and business accounting period in mind when identifying your tax deadlines.
• Use a tax calendar to keep track of key submission dates.

2. Using HMRC Tools to Find Tax Dates

• HMRC’s online services provide detailed information about your tax periods and submission deadlines.
• Create an HMRC online account to receive personalised alerts and updates.

3. Adjusting Tax Periods for Businesses

• Limited companies can choose a financial year that aligns with their business operations.
• Businesses that require changes to their accounting period must notify HMRC and adjust tax filings accordingly.

Businesses and individuals can manage tax deadlines effectively by using the right tools, seeking expert advice, and submitting accurate returns on time.

1. Keep Track of Tax Periods with Accounting Software

Accounting software helps individuals and businesses track tax periods, manage payments, and submit returns on time. Many software options come with features that automate calculations and remind users of upcoming deadlines.

• Automated Reminders – Alerts for tax return due dates, VAT submissions, and payment deadlines.
• Real-Time Tax Calculations – Reduces errors in tax reporting.
• Direct HMRC Submissions – Some software allows direct tax filing, making the process faster.
• Record-Keeping – Stores receipts, invoices, and financial records in one place for easy access.

Popular choices in the UK include FreeAgent, Quickbooks, Xero, and Sage, all of which help businesses stay on top of tax obligations.

2. Use Accountants to Manage Deadlines

Hiring an accountant or tax advisor helps individuals and businesses handle tax periods without mistakes. An accountant can:

• Monitor tax deadlines and remind clients before payments are due.
• Handle complex tax calculations for self-assessment, VAT, or corporation tax.
• Advise on tax-saving opportunities based on the latest HMRC rules.
• Submit tax returns correctly to avoid errors that may trigger penalties.

For self-employed individuals, landlords, and businesses with multiple tax responsibilities, working with a tax expert saves time and reduces stress.

Let GoForma Handle Your Taxes

Tax periods play an important role in financial planning for individuals and businesses. Understanding these timelines helps with budgeting, tax reporting, and avoiding penalties. Staying on top of tax periods makes it easier to meet deadlines, manage cash flow, and keep records up to date.

If you're unsure about your tax obligations or find it challenging to keep up with various tax periods, seeking professional guidance can make all the difference.

Need help with your tax filings or understanding your tax period? Our expert tax accountants are here to simplify the process and keep you compliant. Book a free consultation today to get the support you need.

FAQs on Tax Periods

1. Can I change my business’s tax period?

Yes, you can change your business’s tax period, but it requires approval from HMRC. To do this, you’ll need to submit a request explaining why you want to change your accounting period. Keep in mind that the new tax period must still align with your financial year, and changing it may affect your corporation tax deadlines.

2. What is a tax period on a payslip?

A tax period on a payslip refers to the specific time frame for which the tax has been calculated and deducted from your earnings.