Financial housekeeping: three tips for the end of the tax year

The 2023/2024 tax year ends on 5 April, with the 2024/2025 tax year starting the next day. As a small business owner, this is a great opportunity to get your finances in order before the new tax year begins.

Being well organised and giving yourself plenty of time to meet tax deadlines is smart business all round. Here, we look at what the end of the tax year means for a small London business like yours, and three key things you should do to ready your business for the next 12 months.

1. Add the important dates to your calendar

A big part of paying business taxes is knowing your key deadlines. Here are the main ones to add to your diary:

• 6 April 2024: the 2024/2025 tax year starts

This is when the new tax rates the government introduced in the last Budget come into force. It's also the earliest date you can file your tax return for 2023/2024 (if you want to get ahead for next year!).

• 31 July 2024: make your second payment on account

If you're self-employed and pay your tax through payment on account, this is the deadline for making your second and final payment.

• 5 October 2024: register for Self Assessment

Did you become self-employed during this tax year? If so, you must register for Self Assessment with HMRC. You'll get a unique taxpayer reference (UTR) number, which you'll need when you file your tax returns.

• 31 October 2024: post your paper tax return

While many business owners file tax returns online, there are lots still doing it by post. If you prefer this, be sure to send off your paper form by the end of October.

• 31 January 2025: submit your online tax return

This is your last day for sending HMRC your online tax return for 2023/2024. But you don't have to leave it this late – you can submit anytime from 6 April 2024.

• 31 January 2025: pay your tax bill

To avoid a penalty for missing a payment, you need to pay your tax bill in full by this date.

2. Review your business finances

As the tax year comes to a close, it's well worth taking some time to check your business' finances are as they should be.

• Record, pay and settle all the year's invoices or expenses. List all your tax-deductible expenses and check you have the receipts to match.

• Review your spending and cash flow to make sure your business is in good financial shape for the new tax year to come.

• If you have staff, check that salary payments and pension contributions are accurate and your payroll records are up to date.

3. Organise your records

Good financial planning means keeping records of all your transactions. You never know when you might be asked to provide them.

If you use accounting software, upload any outstanding receipts, transactions and invoices. You might also upload copies of other documents such as bank statements and other relevant financial records.

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