BUSINESS ADVICE • 18 MAY 2023 • 3 MIN READ

A survival guide for the end of the tax year and beyond

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When is the end of the tax year (and other key dates)?

What do I need to prepare for the end of the tax year?

Tax and business planning for the next fiscal year

The end of the tax year is an important time for many of us, with many responsibilities to keep in mind as 12 months of financial activity come to a close. It’s also a good time to reflect on our financial situation, review our expenses and revenue, and plan for the year ahead.

When is the end of the tax year (and other key dates)?

It’s important to keep on top of deadlines throughout the tax year to avoid potential fines and penalties. The end of the tax year means different things for companies and sole traders - but there will be new tax rules and regulations coming into effect for all businesses. Let’s go through these changes and a few important key dates.

Sole traders

If you’re a sole trader, a good practice is to operate on a tax-year basis, preparing your financial statements and tax returns based on the tax year. Historically, this hasn’t been compulsory and sole traders could theoretically have chosen to have any year-end they wish. However, from the 2024/2025 tax year, all sole traders are required to file their tax returns on a tax-year basis, with the 2023/2024 tax year being the transitional period.

1. End of the tax year:

The 5th of April. It’s a great opportunity for sole traders to take stock of their financial records for the year to ensure accuracy throughout the year.

2. Filing taxes:

The deadline for filing taxes online in the UK is the 31st of January. For paper returns the deadline is the 31st of October. Make sure to have all the necessary documents and information ready to file on time!

3. Paying taxes:

The deadline for paying taxes in the UK is the 31st of January. It’s important necessary funds by this date - putting some money aside throughout the year is a good strategy!

If your tax bill is over £1,000, you may need to make payments on account. Payments on account are advance payments towards your tax bill for the next tax year. Here are the key dates for making payments on account:

4. First payment on account:

This is due on the 31st of January of the current tax year. This payment is based on 50% of the tax bill from your previous year.

5. Second payment on account:

This is due on the 31st of July of the current tax year. This payment is also based on 50% of the tax bill from your previous year.

6. The balancing payment:

Is then due on the 31st of January following the end of the tax year.

7. Deadline for making pension contributions:

If you are a sole trader and want to make pension contributions you must make the payment before the end of the tax year.

As a sole trader in the UK, it's important to be aware of these key dates to ensure compliance to avoid penalties and fines - an accountant will help you meet all these necessary deadlines! To make things easier, we have a calendar with all the key tax year dates you need to know.

Companies

Companies can still have any year-end they chose, with many having a 31st of March year-end coinciding with the end of the tax year.

1. Fiscal year-end:

The fiscal year-end is the end of the company's accounting period. This is usually the last day of the month on which the anniversary of your company's incorporation falls. For example, if your company was incorporated on the 25th of June 2022, the fiscal year-end would be the 20th of June 2023. As a company, you can also change your year-end - which is why lots of companies choose to coincide their fiscal year-end with the end of the tax year.

2. Statutory accounts deadline:

Statutory accounts must be filed with Companies House within nine months of the company's fiscal year-end. For example, if your fiscal year-end is the 30th of June 2022, statutory accounts must be filed by the 31st of March 2023.

3. Corporation tax deadline:

The deadline for paying corporation tax is nine months and one day after the end of the accounting period. For example, if your fiscal year-end is the 30th of June 2022, the corporation tax payment deadline would be the 1st of April 2023.

4. Annual Confirmation Statement deadline:

You must file your statement within 14 days of the end of your review period. For example, if your new company is incorporated on the 1st of January 2022, your review period would start on the 1st of January 2022 and end on the 31st of December 2022. Your confirmation statement would therefore be due by the 14th of January 2022.

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What do I need to prepare for the end of the tax year?

There’s a lot to keep in mind during the end of the tax year. To make things easier, we have created a quick checklist to make sure your EOFY process goes smoothly. Using this as a reference will also help you prepare for the next fiscal year.

End-of-year checklist

Review your financial records for the year to ensure that they are accurate and complete - this includes your income, expenses, assets and liabilities
Assess whether you have any money owing (and if you’re owed anything)
Organise any receipts or documentation that you (or your accountant) will need to complete your accounts and tax return
Review your fixed assets to check they are all still in use and make a note of any that need removing (if they have been sold or are obsolete, etc).
Perform and record a stock take - make note of any obsolete stock!
Consider consulting with a tax professional (such as Beany) to ensure you are taking advantage of all possible tax deductions, and whether an accountant can prepare your financial statements
Make sure you are aware of any upcoming deadlines
Reflect on the past year and produce a budget or forecast for the next fiscal year

Tax and business planning for the next fiscal year

As the end of the fiscal year approaches, it's important to review how the past 12 months have been for your business. This is an opportunity to review how your business performed and assess how you’re tracking your goals. This analysis will help for the coming year, as you set budgets and identify areas for growth.

A good way to assess your financial performance is to look for any trends in your revenue and expenses. Maintaining proper budgeting and cash flow is important when setting financial goals for the coming year, as it allows you to identify areas where you can cut costs, prioritise expenses, and make informed decisions about where to allocate resources to achieve your goals.

You should also assess the resources you need for the coming year, such as staff and equipment, and incorporate this into your forecast. Seeking professional help from an accountant can be beneficial here - we offer a wide range of services to take the weight of accounting off your shoulders.

Manage the end of the tax year with confidence

The end of the fiscal year can be a complex and time-consuming process for businesses. However, by reviewing your financial performance over the previous year, setting realistic financial goals, and updating your business plan, you can navigate this period with ease.

We understand the importance of the end of the tax year and are here to help. Your dedicated accountant can help with tax compliance, preparing financial reporting, budgeting and keeping on track with your financial goals.

They’ll also assist with producing accurate statements and forecasting for the next year, so you can make important decisions on your business. Stay on top of your finances and start the next fiscal year in the best possible shape with Beany, and get in touch today.