Financial year 2022: When does the financial year start and end, tax year 2022/23 dates, and what it means for you

Many important changes will come into place at the beginning of the 2022/23 financial year – here's when it starts.
There are fresh changes coming in at the end of the financial year that may affect you. Photo: stevepb / pixabay / Canva Pro.There are fresh changes coming in at the end of the financial year that may affect you. Photo: stevepb / pixabay / Canva Pro.
There are fresh changes coming in at the end of the financial year that may affect you. Photo: stevepb / pixabay / Canva Pro.

Financial years do not run from January to December, as traditional calendars. Instead, they start in April.

In the Spring Statement, Chancellor Rishi Sunak revealed a new tax plan in the face of rising pressure on the government to take action around rising costs of living. As the new financial period begins, these changes will come into effect, while others have already come into effect.

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Here’s when the financial year starts and ends, and how it might affect you.

Here's all you need to know at the end of this tax year. Photo: lovelyday12 / Getty Images / Canva Pro.Here's all you need to know at the end of this tax year. Photo: lovelyday12 / Getty Images / Canva Pro.
Here's all you need to know at the end of this tax year. Photo: lovelyday12 / Getty Images / Canva Pro.
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When does the financial year start and end?

The UK tax year always starts on April 6th and ends on April 5th. This year, that means it will end on Tuesday this week, and begin on Wednesday.

This tradition dates back to 1752, when Britain switched to the Gregorian calendar which governs our months today. The old Julian system saw the financial year begin on New Year’s Day, the equivalent of March 25th.

The British Treasury decided to keep the 1752/53 tax year as 365 days, so as not to lose revenue. This means that, from then on, the tax year would end on April 4th, with the new one beginning on April 5th.

This was shifted by one day in 1800, as there was no Gregorian leap year, but there was a Julian one, giving us the dates we use today. It has remained this way ever since then.

Tax year 2022/23 dates

The dates for the financial year 2022/23 will therefore run from Wednesday April 6th 2022 until Wednesday April 5th 2023.

What do I need to do at the end of the financial year?

The nationwide 1.25 percentage point increase in national insurance contributions will come into effect from April 6th, which will mean that automatic contributions for employees will rise accordingly. Self-employed people will also need to make note for the contributions they pay themselves, as rates will rise to 10.25 percent on earnings up to £50,270 and 2.25 percent on anything above that.

If you earn money from dividends, you will also see a change in the 2022/23 tax year, as the rates at which they are taxed increases by 1.25 percent. This applies to all dividends declared in the new financial year.

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As at the end of any financial year, if you are required to fill out a tax return, HMRC will be in touch with you directly. This applies to self-employed people earning more than £1,000. If this is the first year that this applies to you, you will need to register with HMRC in order to pay tax and National Insurance contributions. Check if you need to fill out a tax return using this tool.

If you do need to self-file, the deadline to file your tax return will be on January 31st, 2023 for online returns and October 31st for paper ones. If you have any questions, contact HMRC. Failure to file or pay your tax bill can result in a minimum £100 late fine or other more serious charges.

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