Tax Year
The 12-month period used for UK tax purposes, running from 6 April to the following 5 April. All income tax, National Insurance, and Capital Gains Tax calculations are based on the tax year, not the calendar year. The unusual start and end dates derive from an 18th-century change to the calendar that the Exchequer declined to adopt for tax purposes.
Related Terms
HMRC
His Majesty's Revenue and Customs, the UK government department responsible for collecting taxes, paying certain forms of state support, and enforcing tax law.
Self Assessment
The system by which individuals report their own income, gains, and reliefs to HMRC each year through an online or paper tax return, rather than having tax collected automatically under PAYE.
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.
P60
An annual certificate your employer gives you at the end of the tax year (by 31 May) summarising your total pay and total tax deducted under PAYE for the year.