The tax year runs from April 6 to April 5 of the following year. Most self-assessment tax returns for the latest tax year must be filed online by 31 January
Do I need to fill out a self-assessment tax return and when is this due?
You are required to submit a tax return if any of the following conditions were met in the previous tax year (from 6 April to 5 April):
You were self-employed as a “sole trader” and earned over £1,000 (prior to deductions for tax relief).
You were a partner in a business partnership.
Your earnings exceeded £100,000.
Additionally, you may need to file a tax return if you received any untaxed income, such as:
Rental income from a property.
Tips and commission.
Income from savings, investments, and dividends.
Foreign income.
For the self-employed, the end of the tax year also presents an opportunity to calculate self-assessment taxes.
Individuals holding an (Isa) should note that the personal allowance for 2023/24 is £20,000, allowing them to assess potential savings before the tax year ends.
In the tax year 2023/24, the capital gains tax allowance stands at £6,000, meaning profits below this threshold, such as those from property or stock sales, are not subject to taxation.
Does my tax allowance renew every year?
The standard personal allowance stands at £12,570, representing the amount of income exempt from taxation.
Your personal allowance might vary depending on factors such as claiming a marriage allowance or a blind person’s allowance.
The tax rates are structured as follows:
Personal allowance: Income up to £12,570 is taxed at 0%.
Basic rate: Income ranging from £12,571 to £50,270 is taxed at 20%.
Higher rate: Income from £50,271 to £125,140 is taxed at 40%.
Additional rate: Income exceeding £125,140 is taxed at 45%.
How does the new tax year affect my finances?
For pension holders, the standard personal allowance remains at £12,570, while the additional-rate threshold decreased from £150,000 to £125,140 in April.
Income tax thresholds are set to remain unchanged until 2028.
Pension allowances in 2023, affecting contributions in 2024, with the standard annual allowance increased from £40,000 to £60,000 in April.