How to prepare your business for tax-year end in 2025?  

We know you’re busy. You’ve got a lot on your plate running your small business. Preparing for the tax year might feel overwhelming, but it doesn’t have to be. With a bit of planning and the right approach, you can tackle it smoothly. 

Key tax year dates you need to know

Let’s start with the basics. The UK tax year runs from 6th April to 5th April the following year. So, the current tax year 2023/24 ends on 5th April 2024.

The next tax year (2024/25) starts on 6th April 2024 and ends on 5th April 2025.

So, why does the UK tax year end on 5th April? It all goes back to 1752 when the UK switched from the Julian calendar to the Gregorian calendar. This change made 11 days disappear from the year, and as a result, the start of the tax year moved from March 25th to April 5th. This shift stuck, and the tax year has ended on April 5th ever since. So, if you've ever wondered, "When does the tax year end?" now you know why it's that date!

Important tax year deadlines to keep in mind

Deadlines are key to avoiding penalties. Here are the ones you don’t want to miss:

Steps to prepare for the tax year end

Here’s how to make sure you’re ready when those tax year dates roll around:

1. Get your financial records in order

Keeping things organised all year makes the tax year a breeze. Gather up those receipts, invoices, and bank statements.

2. Check your income and expenses

Take a good look at what you’ve earned and spent. Not only will this help you file your return, but it’ll also give you a clear view of your business’s financial health for the tax year. Don’t forget to account for any business expenses that might lower your tax bill.

3. Talk to a professional

If tax talk makes your head spin, reach out to a tax professional. They’ll make sure you’re playing by the rules for the tax year uk and might even spot savings you hadn’t thought of. Yes, there’s a cost, but it’s worth it if it saves you money or headaches later.

4. Plan for your tax payments

Make sure you’ve got the funds set aside for your tax year bill. Some business owners like to keep a separate account just for taxes to avoid any surprises. If your income varies throughout the tax year, think about setting aside funds throughout the year so you’re ready for that 31st January deadline.

5. Take advantage of tax relief

There are some reliefs and allowances out there for small businesses, like the Annual Investment Allowance or R&D tax credits. Do a bit of research (or ask your accountant) to make sure you’re not missing out on anything that could reduce your tax year bill.

Common questions

Do I have to pay my tax bill by 31st January?

Yes, it’s non-negotiable. Your Self-Assessment tax return and any owed tax must be in by then. If you miss it, expect penalties. Plan for the tax year and you’ll be fine.

What happens if I miss a tax year deadline?

Penalties and interest are the consequences. If you’re struggling to meet a tax year deadline, don’t ignore it. Get in touch with HMRC, they might give you an extension or offer a payment plan to help you out.

How can I make this process easier?

Preparation is your best friend. Keep records organised, set reminders for tax year dates, and consider getting professional advice if you need it. The goal is to make this as stress-free as possible.

How to avoid last-minute stress at the end of the UK tax year?

The tax year end doesn’t have to be a nightmare. With a little planning and by following the steps above, you’ll keep your business on track and avoid any last-minute panics when the uk tax year ends.

This content is for general information only and not intended as legal, tax, accounting, or financial advice. For advice specific to your business, please consult with professionals who specialise in your industry.