The UK tax year runs to 5 April, which is one of the odder dates in public administration and a genuinely important one. Several allowances work on a use-it-or-lose-it basis. Miss the date and they are gone, with no way to reclaim them.
This is the document side of that. Not tax advice, just what to gather, what to keep and how long to keep it.
What to gather
Most of this you already receive. The job is having it in one place rather than scattered across email, post and three provider portals.
- P60 or P45 from any employment, showing pay and tax deducted.
- P11D if you have benefits in kind such as a company car or medical cover.
- Bank and building society interest statements. Banks report to HMRC, but you need the figures if you complete a return.
- Dividend vouchers and platform tax certificates for any investments.
- ISA statements showing what you have subscribed this year.
- Pension contribution statements, both yours and your employer’s.
- Gift Aid records for charitable donations, which higher rate taxpayers can claim relief on.
- Rental income and expenses if you let property, including mortgage interest.
- Capital gains records: what you sold, when, what you paid and what you received.
- Self-employment records: invoices, expenses, mileage.
The allowances that expire on 5 April
These reset with the new tax year and unused amounts generally do not carry forward.
The ISA allowance is £20,000 a year across all your ISAs. If you have not used it by 5 April, that year’s allowance disappears.
The capital gains annual exempt amount has fallen substantially in recent years, so it is worth checking the current figure before assuming a disposal is covered.
The dividend allowance has also been reduced repeatedly and now catches people it never used to.
The inheritance tax annual gifting exemption of £3,000 can be carried forward one year only, so if you have not used last year’s either, this is the point at which it lapses for good.
Marriage Allowance is worth a specific mention because it is widely unclaimed and can be backdated four years.
Dates worth knowing
5 April is the end of the tax year. 6 April starts the new one.
31 January is the online self assessment deadline for the tax year that ended the previous April, and it is also when any balancing payment is due.
31 July is the second payment on account for those in the system.
5 October is the deadline to register for self assessment if you have new income to declare. This one catches people who started a side business or began letting a property.
How long to keep records
HMRC’s guidance is at least 22 months after the end of the tax year for employed individuals, and at least five years after the 31 January submission deadline if you are self-employed or in business.
In practice, six years is the sensible default. For anything relating to property or investments you still own, keep the purchase records indefinitely, because you will need them to calculate a gain when you eventually sell.
Make next year easier
The reason this is stressful is that it happens once a year and everything has to be reassembled from scratch.
Set up one folder, digital or physical, at the start of each tax year. Everything tax-related goes in as it arrives rather than being found again in March. Ten seconds each time, against an afternoon of archaeology later.
Where FamilySafe fits
FamilySafe gives that folder a permanent home, with the documents attached to the accounts they relate to and the deadlines tracked so nothing turns up as a surprise. If you have an accountant, you can share exactly what they need without emailing sensitive documents around.
This is general information, not tax advice. Figures and allowances change, so check the current position on GOV.UK or speak to an accountant about your circumstances.
