Set Up a Company? Here’s When Your Financial Year Starts 📅

📅 What You Need to Know About the UK Financial Year 

 

The UK doesn’t follow the January–December calendar for tax like many other countries. Instead, it’s got its own timeline, and understanding it is essential whether you're self-employed, running a business, or managing payroll. Let’s break it down 👇 

 

💼 What Is the Financial Year? 

 

It’s a 12-month period used to report income, expenses, taxes, profits, and losses. 

In the UK, the government financial year runs from 6 April to 5 April. 

 

🔸 Employees pay income tax via PAYE 

🔸 Self-employed individuals must register & submit a Self Assessment 

🔸 Businesses report profits & pay corporation tax 

 

🕰️ Why Does It Start in April? 

 

Fun fact: It’s all because of a calendar change in 1752! 

 

Britain switched from the Julian to the Gregorian calendar and “lost” 11 days. To avoid losing tax revenue, the tax year was moved to 6 April, and it’s been that way ever since. 

 

Yes, it’s quirky. Yes, it’s still the law. 

 

🏢 Businesses Have Different Dates 

 

While the government tax year is fixed (6 April–5 April), companies often follow a financial year based on when they were incorporated. 

Example: 

 

📅 If your company was set up on 23 September, your financial year will likely run from 1 October to 30 September each year. 

 

💼 That means your first-year accounts would usually cover 12 months and just over 1 week, starting from 23 September (your incorporation date) to 30 September the following year, the end of your accounting reference period. 

 

This slightly extended first year helps align your business with HMRC and Companies House requirements. 

You still need to know government deadlines, especially for tax. 

 

🗓️ Key UK Financial Year Dates (2024/25) 

 

✔️ 6 April – New tax year starts 

 

✔️ 31 May – Employers must issue P60s 

 

✔️ 6 July – Deadline to report employee benefits (P11D) 

 

✔️ 5 Oct – Deadline to register for Self Assessment 

 

✔️ 31 Jan – Self Assessment and Capital Gains payments due 

 

✔️ 5 April – End of the financial year 

 

Save this post — you’ll need these! 📌 

 

📉 Year-End = Crunch Time for Finance Teams 

 

When the financial year ends, finance teams get to work: 

 

🔍 Reconciling all payments & transactions 

 

📑 Preparing reports for audits 

 

📊 Reviewing profits, losses, investments & equity 

 

📚 Finalising the books for HMRC & stakeholders 

 

It’s a massive project — accuracy is everything! 

 

🙌 How Everyone Can Help 

 

Finance isn’t a solo sport. Here’s how you can help your team during year-end: 

 

📥 Submit receipts on time 

 

💳 Send in any missing invoices 

 

🧾 Complete expense reports quickly 

 

💡 Use tools that automate reports & reconciliation 

 

A little effort = a smoother close & fewer penalties. 

 

✅ Pro Tips for a Flawless Year-End 

 

✨ Use cloud-based accounting software 

 

✨ Stay on top of deadlines throughout the year 

 

✨ Keep expense records clean and digital 

 

✨ Communicate across departments early 

 

The smoother your records, the easier it is for your team (and HMRC!). 

 

💬 Final Thoughts 

 

The UK financial year has its quirks, but knowing the key dates and responsibilities helps avoid stress and fines. 

 

📍Follow HMRC for official info 

 

📍Support your finance team 

 

📍Plan ahead for year-end 

 

Knowledge = power when it comes to tax. 💥 

 

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