Tax Year End 2024/25

The tax year end is a crucial date for all taxpayers to consider as it is the deadline for a variety of tax-related relief, payments and activities. For example, it is the date on which your tax allowances, deductions, and credits reset for the new tax year.

April 2025 also signals the end of your personal earnings year, with the end of the tax year serving as the end of your yearly income – this is particularly important for understanding the tax band in which you sit and as we outline later how this figure impacts available allowances. It's important to keep track of tax year end so you do not miss out on any potential reliefs or allowances.

If you need more information around tax year end and the implications of the end of the tax year then why not speak to one of our expert advisers and arrange a free initial consultation today!

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When does the tax year end?

This tax year officially ends on the 5th April 2025 with the 6th April 2025 being the first date in the 2025/26 tax year.

Tax year end for self-employed

Tax year end looks slightly different for those of you who are self-employed and do not necessarily pay taxes out of a monthly salary. For self-employed workers, there are further tax dates to remember alongside additional documentation to be completed. You must also fill out and file self-assessment forms declaring income made during the tax year, and the deadlines for filing these forms are not necessarily the same as the dates salaried employees must follow, we have included these below so put them into your calendar!

Self-assessment tax return

A self-assessment tax return is for people and businesses with other income which is not automatically taxed. A self-assessment must be completed by:

• Anyone who is self-employed as a ‘sole trader’ and earned more than £1,000.
• Partners in a business partnership.
• Anyone earning £100,000 or more (even if you are taxed via PAYE)

A self-assessment will also be needed if you have any untaxed income, this could include:

• Rental income
• Commissions or tips
• Income from savings, investments and dividends
• Foreign income streams

What should I do before the end of the tax year?

Here are some ‘quick wins’ you could consider ahead of the tax year end.

1. Top up your ISA

• Every year you have an ISA allowance of £20,000 which can be put into a Cash ISA, Stocks and Shares ISA, LISA or innovative finance ISA; this is an essential end of tax year item to take advantage of, especially given its tax free growth and income status.

2. Save for your children

• Similar to the above ISA suggestion, children are entitled to a Junior ISA (JISA) allowance of £9,000 per annum. You could consider funding a JISA to provide your children with a nest egg when they turn 18.

3. Contribute towards your retirement or buying your first home

• Another ISA to consider is a Lifetime ISA (LISA) which is designed for anyone over 18 and under 40 saving for their first home or future retirement. You can invest a maximum of £4,000 a year which the government will add a 25% bonus to the maximum of £1,000 per year. You can either use the money to purchase a new home (restrictions apply, e.g. property price) or access it from age 60 for later life/retirement.
• Pension contributions are an effective planning tool and a major tax year end consideration. You can contribute into your pension an amount up to your annual ‘relevant earnings’ (maximum £60,000 depending on earnings, or greater if carry forward allowance is available). Any personal pension contribution (subject to net relevant earnings restrictions) provides you with tax relief at your marginal rate.
• Additionally making a pension contribution, depending on your annual income, could reinstate other benefits or allowances which are otherwise tapered by a higher income.
• With pension contributions it is important to note the ‘Carry Forward’ rules which allow you to carry forward your previous three years unused allowances in addition to the current year, this means at this tax year end you will lose the annual allowance for the 2021/22 tax year if unused.

4. Use your Capital Gains Tax Allowance

• The Capital Gains Allowance, currently set at £3,000 per tax year, is a key consideration for tax planning. It cannot be carried forwards so it's recommended to make the most of the allowance each year.

5. Dividend Allowance

• Alongside the Capital Gains allowance those with invested assets can also benefit from their dividend allowance – currently this is £500 per year which can be paid to you tax-free and then above £500 you pay dividend tax rates (8.75%, 33.75% and 39.35%). 

6. Gifting and Estate Planning

• Every tax year you are afforded exemptions for making gifts; these are £3,000 as an annual gift exemption and £250 which is a small gifts exemption. These exemptions are simple ways of potentially reducing any future inheritance tax (IHT) implications.

7. Other allowances to consider

• Personal Savings Allowance (PSA) – Your PSA refers to the amount of savings interest income/growth you are entitled to earn tax free, with the current levels at £1,000 for a basic rate tax payer and £500 for a higher rate tax payer, while additional rate tax payers are not entitled to this allowance at all.

For more information, take a look at our Personal Tax and Allowance Checklist.

What are the tax year dates for 2024/ 2025?

As we move through the 2024/25 tax year, we have outlined some dates below which are of note and should definitely be in your diaries!

• April 6th 2024 - The start of the current tax year.
• April 19th 2024 - The deadline for the final PAYE submission for the previous tax year 2023/24 which ended on 5th April 2024.
• April 30th 2024 - The date for which the penalties for any unfiled self-assessment tax forms will be applied from.
• 31st July 2024 - An important date for the self-employed, as this is the last day to make a second payment for your taxes owed from the previous tax year.
• 5th October 2024 - The first deadline for submissions of tax returns for the tax year and also the deadline for self-employed workers to register with HRMC for the current tax year.
• 31st October 2024 - The deadline for submission of tax returns in paper format for the tax year ending 5th April 2024.
• 30th December 2024 - The deadline to submit your online tax return for automatic payment of owed taxes from your pension and wages.
• 31st January 2025 - The deadline for online self-assessment tax returns for the 2023/24 tax year to be completed.
• 5th April 2025 - The final day for the current tax year.

How can we help?

Having a financial adviser gives you the peace of mind that all the possible reliefs and allowances are taken advantage of ensuring you meet your long term goals and aims within a bespoke financial plan constructed alongside your financial adviser. It is important to note this area can be complex particularly when considering different taxes and how they interact with one another and so having a financial adviser is crucial.

Here at TPO we ensure that our clients are aware of all the available reliefs and exemptions which apply to them and we touch base throughout the year as important tax year dates come into view.

If you would like to have an initial free consultation to discuss your financial goals, please get in touch.

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The Financial Conduct Authority does not regulate tax advice. This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.