Navigating the complexities of tax commitments throughout the financial year can be challenging for businesses, investors, and trustees. Staying informed and organised with your tax obligations keeps you compliant with HMRC and allows for more efficient financial planning for your business or personal finances. As the financial landscape continues to evolve, this guide will be a helpful tool in managing your tax-related responsibilities throughout the 2023/24 tax year.
So, when does the 2023-24 tax year start and conclude? The financial year 2023-24 kicks off on the 6th of April, 2023, and wraps up on the 5th of April, 2024.
This article will cover all important tax dates and deadlines for the tax year 2023/24. We will also cover tax and allowance rates for 2023/24.
Important UK tax dates and deadlines for the tax year 2023/24
For ease of understanding and convenience, we have assembled a comprehensive guide from April 2023 to April 2024, chronologically covering all significant UK tax dates for the 2023-24 tax year.
These dates can help businesses, investors, and trustees stay ahead in their financial planning and avoid late submission penalties imposed by HMRC. This is your one-stop source for all principal tax dates from HMRC – incorporating deadlines for self-assessment, VAT return submissions, regular PAYE dates, and the P11D deadline for 2023-24.
April 2023
5th of April – Final date for claiming your PAYE tax refund for the 2018/2019 tax year.
6th of April – The 2023/24 tax year commences, marking the right time to gather thorough documentation for your 2022/23 tax return.
19th of April – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of April – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
May 2023
3rd of May – Deadline for P46 (car) paper submissions regarding company car changes between the 6th of January and the 5th of April.
19th of May – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of May – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
31st of May – Final day for issuing 2022/23 P60 documents to employees and submitting Automatic Exchange of Information (AEOI) returns for the year ending the 31st of December 2022.
June 2023
19th of June – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of June – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
30th of June – VAT tax return deadline.
July 2023
4th of July – Final day for employees to offset PAYE income tax due to employment-related securities, avoiding a penal s222 charge.
6th of July – Submission deadline for Expenses and Benefits forms P11D(b) and P11D.
19th of July – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of July – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
31st of July – Deadline for PAYE Settlement Agreement calculation (specified in PAYE Settlement Agreement), second payment on account (POA) due for individuals, trusts, and partnerships. Last day for making ‘scheme pays’ elections (where eligible) to request a pension scheme pays the annual allowance tax charge for the 2021/22 tax year.
August 2023
2nd of August – Deadline for P46 (car) submissions regarding company car changes between the 6th of April and the 5th of July.
19th of August – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of August – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
31st of August – Deadline for PAYE Settlement Agreement calculation (specified in PAYE Settlement Agreement).
September 2023
19th of September – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of September – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
30th of September – VAT tax return deadline.
October 2023
5th of October – Deadline to inform HMRC if you’ve become self-employed or started earning property income.
19th of October – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of October – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
31st of October – Deadline for paper self-assessment returns for the 2022/23 tax year.
November 2023
2nd of November – Deadline for P46 (car) submissions regarding company car changes between the 6th of July and the 5th of October.
19th of November – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of November – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
December 2023
19th of December – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of December – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
30th of December – Deadline for online submission of self-assessment tax returns for the year ending the 5th of April 2022 for HMRC to collect tax through PAYE codes, if less than £3,000 is owed.
31st of December – Deadline for filing your company’s annual accounts, if your accounting year ends on the 31st of March.
January 2024
19th of January – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of January – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
31st of January – Deadline for online Self Assessment tax returns and payment of tax owed, including the first payment on account. This is the deadline for the annual update/ confirmation of the details held on the HMRC Trust Register for taxable trusts.
Note: HMRC must receive a paper tax return by this date if you are a trustee of a non-resident company registered pension scheme, as online returns are not permitted in these cases.
February 2024
2nd of February – Deadline for P46 (car) submissions regarding company car changes between the 6th of October and the 5th of January.
19th of February – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of February – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
March 2024
19th of March – Non-electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
22nd of March – Electronic payment method deadline for paying PAYE and NICs to HMRC’s Accounts Office.
April 2024
The 2023/24 tax year concludes.
We will now cover the tax rates and allowances for the tax year 2023/24.
Tax Rates and Allowances for the Year 2023/24
The tax year transitions from the 6th of April of a particular year to the 5th of April of the subsequent year. Annually, tax rates, alongside various limits and allowances that help reduce your tax payment, may experience changes. Here’s a concise summary of what to anticipate from the upcoming tax year (2023/24).
2023/24 Tax Slabs
Income Tax:Â
The proportion of your earnings falling within certain income brackets or ‘bands’ is taxed at applicable rates. In the last Autumn Statement, the Chancellor disclosed the extension of the freeze on income tax thresholds until April 2028 and the reduction of the 45% ‘additional rate’ band from £150,000 to £125,140, implying a higher tax payout as wages increase.
The income tax rates for 2023/24 are:
- The basic tax rate at 20%: Up to £37,700
- Higher tax rate at 40%: From £37,701 to £125,140
- The additional tax rate at 45%: Above £125,140
The tax-free Personal Allowance remains at £12,570 annually but is reduced for those earning over £100,000. Each £2 earned above £100,000 shrinks the Personal Allowance by £1. Therefore, if you earn £125,140 or more, your personal tax allowance is zero.
Please note that rates of income tax on earned income in Scotland are different, with the higher and top rates of tax increasing by 1% to 42% and 47%, respectively, for the new tax year:
- The starter tax rate at 19%: Up to £14,732
- Basic tax rate at 20%: From £14,733 to £25,688
- Intermediate tax rate at 21%: £25,689 to £ 43,662
- Higher tax rate at 42%: From £43,663 to £125,140
- The additional tax rate at 47%: Above £125,140
Dividend Income Tax Rates and Dividend Allowance:Â
The first part of dividend income in each tax year, known as the Dividend Allowance, does not require additional tax payment for all UK taxpayers. For 2023/24, it’s £1,000, which is half the allowance in 2022/23, and will decrease to £500 in 2024/25.
Dividends received above this allowance are taxed depending on your income tax rate. Dividends from non-ISA or non-pension shareholdings above your personal and dividend allowances are taxable.
- Basic rate taxpayers 8.75%
- Higher rate taxpayers 33.75%
- Additional rate taxpayers 39.35%
The Dividend Allowance is distinct from both the income tax personal allowance and the personal savings allowance mentioned earlier. If you receive dividends from shares not held in an ISA or pension and they exceed your personal and dividend allowances, these dividends are subject to tax.
Personal Savings Allowance and Starter Rate for Savings:Â
The personal savings allowance provides a £1,000 income tax exemption on savings income for basic-rate taxpayers and a £500 allowance for higher-rate taxpayers. Additional-rate taxpayers at the top 45% income tax rate receive no allowance. However, lower earners can benefit from a starter rate for savings of up to £5,000 per year if their other income is under £17,570 during that tax year.
Interest generated from already tax-exempt sources, like assets stored in ISAs and earnings from Premium Bonds, doesn’t contribute towards the allowance. However, certain investments do count, including ownership of government bonds and corporate bonds, along with unit trusts, Open-Ended Investment Companies (OEICs), and investment trusts that mainly invest in bonds and yield interest rather than dividend income.
Capital Gains Tax Allowance:Â
The ‘annual exempt amount’ for capital gains tax is the highest profit you can make on selling or disposing of assets without paying capital gains tax. For the 2023/24 tax year, it’s £6,000, a steep decrease from £12,300 in 2022/23.
The Capital Gains Tax is subject to 10% at the basic rate and 20% at the higher rate. However, for residential properties (excluding your primary residence), the rates increase to 18% and 28%, respectively. The specific rate you’ll pay for capital gains tax will hinge on your other taxable earnings. For additional details, consult the HMRC website.
ISAs:Â
The 2023/24 ISA allowance remains at £20,000. This is available to UK residents aged over 18, with the primary options being a Cash ISA and a Stocks and Shares ISA. The allocation can be divided between these options, with the condition that contributions can only be made through one provider of each type of ISA per tax year. Investments in an ISA are protected from capital gains tax and income tax. Please note annual ISA allowances cannot be rolled over and used retrospectively.
Junior ISAs:Â
The Junior ISA (JISA) allowance remains at £9,000 in 2023/24. A parent or legal guardian can open a Junior Stocks & Shares ISA for an eligible child, manage the account, and make investment decisions. Other family members and friends can contribute up to the annual investment limit.
Pensions:Â
The 2023/24 maximum contribution to all your pensions, known as the ‘annual allowance,’ has risen from £40,000 to £60,000 following the Spring Budget. Tax relief on personal contributions is usually limited to 100% of your relevant UK earnings for the tax year.
At present, an investor can obtain a tax relief of up to 45% when making a personal contribution to a private pension, like a SIPP. The HMRC contributes 20% tax relief to the pension, with any additional and higher rate tax relief being reclaimable. It’s important to note that the tax rates and pension tax relief for Scottish taxpayers vary slightly from the rest of the UK.
Assuming there are adequate earnings in the tax year, those making contributions to a pension, including SIPPs, can carry forward and contribute unused annual allowances from the preceding three tax years.
For those receiving taxable ‘flexible’ retirement benefits, such as income or lump sums from pension drawdown, a lower annual allowance known as the Money Purchase Annual Allowance (MPAA) applies. This has been raised from £4,000 to £10,000 for the 2023/24 tax year.
For those with higher income, the annual allowance gradually diminishes to a minimum of £10,000 in 2023/24, an increase from £4,000 in 2022/23. However, this is primarily a concern for individuals with earnings and income broadly exceeding £200,000 a year. For more information, refer to the HMRC website.
Non-taxpayers can still take advantage of pension tax relief to a certain extent. Eligible individuals below 75 years old can contribute up to £2,880 to a pension and receive a tax relief of £720, resulting in a total contribution of £3,600, regardless of earnings.
The limit on the overall value of your pensions from which you can withdraw benefits without incurring a tax charge, known as the Lifetime Allowance, is set to be abolished following an unexpected move in the recent Spring Budget. Any amount over the cap (£1,073,100 for the 2022/23 tax year) is taxed at a significantly higher rate, 55% for lump sum withdrawals. The cap is scheduled to be abolished from April 2024, and the charge from April 2023.
Inheritance Tax:Â
Inheritance tax remains 40% on an individual’s estate exceeding a tax-free allowance, or the nil-rate band, of £325,000. As announced in the Autumn Statement, the Chancellor has extended hold on the inheritance tax (IHT) threshold until April 2028.
This implies that an increasing number of individuals will be subject to IHT as more estates surpass the tax threshold, primarily due to the surge in property values. This often necessitates prudent planning, not just by affluent individuals, but by many families who perceive their financial circumstances as quite average and may not foresee the impact. You can use an IHT calculator to estimate the potential tax burden your heirs might bear, or consult with our planners to discover effective methods for transferring your wealth to others.
Marriage Allowance:Â
Married couples and civil partners might be eligible for the marriage allowance. Individuals can transfer an unused portion of their personal allowance to their spouse or civil partner up to a set limit. This provision is not applicable if the spouse or partner is taxed more than the basic rate. The maximum transferable amount for 2023/24 is £1,260.
National Insurance Contributions:Â
The rates for National Insurance contributions (NICs) remain steady for both employees and employers in 2023/24. For employees, NICs are charged at a rate of 12% on earnings between the primary threshold and the upper earnings limit, and at a rate of 2% on earnings exceeding the upper earnings limit. Employers face a NICs rate of 13.8% on earnings above the secondary threshold.
The primary threshold for 2023/24 stands at £242 per week, with the secondary threshold set at £175 per week. The upper earnings limit is set at £967 per week for the 2023/24 tax year, maintaining alignment with the higher rate threshold for income tax. All these thresholds remain the same as in 2022/23.
In the 2022/23 fiscal year, there were changes in the rates of NICs for employees and employers, as well as adjustments to the primary threshold for employees:
The then Chancellor, Rishi Sunak, in the Spring Statement 2022, announced that the primary threshold, originally set at £190 starting from the 6th of April 2022, would rise to £242 effective from the 6th of July 2022. This adjustment aimed to alleviate the effects of the 1.25 percentage point increase in NICs rates for 2022/23, marking the initial phase of a new tax introduction: the Health and Social Care Levy.
On 22nd of September 2022, Chancellor Kwasi Kwarteng announced the reversal of the 1.25 percentage point increase in NICs rates from the 6th of November 2022, and the cancellation of the Health and Social Care Levy.
For more details on these changes, refer to the Commons Library briefing on the legislation repealing the Health and Social Levy.
Additional Information
Specifics about tax rates, allowances, and tax credits for the 2023/24 year are provided in Annex A to HM Treasury, Overview of Tax Legislation and Rates, March 2023, released concurrently with the Spring Budget 2023.
