Welcome to the New Tax Year 2022/2023!
Let's look at what is the tax year and the 6 reasons knowing the tax year is important.
My name is Valerie Chan. I'm the Director of VF Accountants and ACCA Qualified.
Together Transforming You and Your Business. So come along with me.
First of all, what is the UK tax year?
It starts from the 6th of April, lasts for 12 months and ends on the 5th of April. I know when I first started studying tax, I also couldn't remember this date. But as long as you remember the 6th of April automatically it ends on the 5th of April.
Let's explore the 6 reasons knowing your tax year is important:
1. Tax Planning
We can time your tax planning so that legitimately we can minimize your tax due.
2. Claim back
You don't want to miss out on the money that you're owed. For instance, you can claim back overpaid tax for the last 4 years if you're employed.
3. Tax Filing
You can meet Her Majesty's Revenue and Customs (HMRC) tax filing requirements for the employed and the self-employed.
4. Budget
You can budget, that is, put sufficient money aside for the tax that you owe.
5. Deadlines
You need to know your tax year so you don't miss any deadlines and finally
6. Penalties
You can avoid penalties.
So, to summarize, here are the 6 reasons knowing your tax year is important:
1. Tax Planning
2. Claim back
3. Tax Filing
4. Budget
5. Deadlines and
6. Penalties
If you found this short tax tutorial useful, please leave your comments about any issues you might have encountered with your tax year.
Happy New Tax Year!