25.03.2021 | 5 minutes estimated reading time | Print this article

End of tax year 2021: When it is and what you need to do

As Benjamin Franklin famously said, “The only two certainties in life are death and taxes”, and with the upcoming end of tax year 2021, that statement becomes very real for many of us. Knowing the key tax dates and when your deadlines are is essential in submitting your tax returns on time and avoiding charges. It’s also important to be aware that it’s not just self-employed individuals and sole traders who need to submit a tax return, as there are other forms of taxable income that might apply to you.

Key highlights  

  • The tax year runs from the 6th April each year
  • Each tax year has several important dates that it’s crucial to be aware of in order to avoid penalty charges
  • There are several reasons why you need to file a tax return, aside from being self-employed or registered as a sole trader

What’s on this page 

  • When is the end of the tax year?
  • Why is the end of the tax year important?
  • Important dates of the tax year
  • What do I need to do at the end of the tax year?
  • Registering for a Raisin UK account

When is the end of the tax year?

The end of the current tax year is the 5th April 2021.

This means that the 6th April 2021 is the first day of a new tax year, 2021/22. Each tax year runs from the same date and carries with it certain deadlines for submitting tax returns.

Why is the end of the tax year important?

The end of the tax year is generally more important for those who are self-employed or registered as a sole trader, rather than people who are employed by companies. This is because self-employed people and sole traders are responsible for paying their own taxes and submitting their earnings through a process called self-assessment.

However, even if you are a salaried employee and earn your income via PAYE (Pay As You Earn), there are also a few instances where you might need to file a tax return, including:

  • If you’re the landlord of a property and earn money from rent
  • If you have income from savings or investments over a certain threshold
  • If you receive tips or commission
  • If you also earn overseas income

Find out whether you need to complete a tax return with our handy guide.

Important dates of the tax year

To avoid facing penalty charges and to stay organised, you might want to highlight the following 2021 dates in your diary:

31st January
  • Deadline for ‘payments on account’ for the current tax year 
  • Deadline for submitting your online tax return for the previous tax year
  • If you become aware of any issues or errors with your tax return, you can amend that return up to 12 months after this date
5th April
  • The end of the tax year. Shortly after this date, anyone required to file a tax return will receive notification advising them to file a return for the tax year that has just ended
31st July
  • The second ‘payment on account’ for the previous tax year is due
5th October
  • If you have earned any income that has not been taxed, or received capital gains in excess of £12,300, you will need to inform HMRC by this date so that they can send you a notice to file a tax return
  • If you are self-employed, you must register with HMRC for tax purposes by this date
31st October
  • Any paper tax returns must be submitted by this date. If you submit paper tax returns after this date, there will be a penalty to pay, even if there is no tax to be paid.
30th December
  • If you file your tax return online, you will need to submit it by this date if you have employment or pension income and want HMRC to collect the self-employed tax through your PAYE tax code

What do I need to do at the end of the tax year?

If you need to file a tax return or have had one sent to you, it’s important you complete this before the deadline date of 31st January for online returns, or the 30th December for paper returns. If you fail to do so, you could face a fine.

Register for a Raisin UK Account

If you’re self-employed, having a savings pot can be essential, as it provides a safety net if work becomes sparse, enables you to take any holidays and gives you peace of mind should you need to take any time off due to illness. You could also use it to pay your tax bills quickly and easily, without having to worry about adding to your outgoings.

Alternatively, you might have just received a tax rebate that you’d like to put to use by taking advantage of competitive interest rates. If you have a lump sum to deposit, you might want to consider opening a fixed rate bond, which locks your money away for a set period of time at a fixed rate of interest – typically, the longer you can lock your money away for, the more interest you will earn.

There are different types of savings accounts available, making it simple for you to choose one that suits your lifestyle.

Compare savings accounts

At Raisin UK, online banking is made easy thanks to a user-friendly dashboard which allows you to view all of your accounts with partner banks. If you want to quickly and easily apply for savings accounts with attractive rates from a range of UK partner banks, register for a Raisin UK Account and log in to apply today. Don’t forget that it’s free to open an account.