The tax year in the United Kingdom runs from 6 April to 5 April the following year. So, for example, the tax year 2020 ran from 6 April 2020 to 5 April 2021. The tax year is broken down into 12 months, known as tax periods. There are different tax rates and allowances that apply depending on which tax period you are in.
You can file your taxes online or through the mail
The deadline to file your taxes is usually 31 October. However, if you are filing your taxes online, the deadline is usually midnight on the actual day. The deadline for filing your taxes is 31 October. If you are self-employed, you will need to file a Self Assessment tax return. The deadline for this is also 31 October. The tax year 2021 runs from 6 April 2021 to 5 April 2022. The main changes that have been announced for this tax year are:
- The personal allowance will increase to £12,570
- The higher rate threshold will increase to £50,270
- The marriage allowance will increase to £1,260
- The self-employed National Insurance lower profits limit will increase to £9,500
- The VAT registration threshold will increase to £85,000
There are a number of tax deductions and credits you may be eligible for. These can reduce the amount of tax you owe
Some of the more common deductions and credits include:
- The personal allowance
- The married couple’s allowance
- The blind person’s allowance
- The disabled person’s tax credit
- The working tax credit
- The child tax credit
You can file an extension if you need more time to file your taxes
- If you are self-employed, you will need to pay Class 2 and 4 National Insurance contributions. The rates for these will remain the same as last year. The self-employed National Insurance lower profits limit will increase to £9,500. This is the amount of profit you can make before you start paying National Insurance contributions.
- If you are a company director, you will need to pay Class 1 National Insurance contributions. The rates for these will remain the same as last year. Class 4 National Insurance contributions are payable on profits above £9,500. The rate for this will remain the same as last year at 9%.
- The VAT registration threshold will increase to £85,000 from 1 April 2021. This is the amount of turnover you can have before you need to register for VAT.
- If you are a higher rate taxpayer, you will pay 40% tax on profits above the higher rate threshold of £50,270.
- The personal allowance is the amount of income you can earn before you start paying tax. For 2021/22, the personal allowance will be £12,570.
- The marriage allowance is an amount that you can transfer from your spouse or civil partner if they earn more than you. For 2021/22, the marriage allowance will be £1,260.
- The blind person’s allowance is an additional amount of income that you can earn before you start paying tax. For 2021/22, the blind person’s allowance will be £2,590.
- The disabled person’s tax credit is a credit that you may be eligible for if you are disabled or have a long-term health condition.
If you owe money on your taxes, there are a number of payment options available to you
If you are unable to pay your taxes in full, you should contact HMRC to discuss your options. You may be able to set up a payment plan or make use of the Time To Pay service. If you do not pay your taxes on time, you will be charged interest on the amount you owe. You may also be liable for late payment penalties. These can be as high as 100% of the tax owed. If you are unable to pay your taxes, you should contact HMRC as soon as possible to discuss your options.
When does the tax year start and end
The tax year 2021 runs from 6 April 2021 to 5 April 2022. The main changes that have been announced for this tax year are:
- The personal allowance will increase to £12,570
- The higher rate threshold will increase to £50,270
- The marriage allowance will increase to £1,260
- The self-employed National Insurance lower profits limit will increase to £9,500
- The VAT registration threshold will increase to £85,000
You can download tax forms and publications from the IRS website
You can also get tax forms and publications by calling the IRS at 1-800-829-3676.
If you need help with your taxes, you can contact the IRS for assistance, the IRS can help you with a number of tax-related issues, including:
- Filing your taxes
- Paying your taxes
- Tax refunds
- Tax audits
