Glossary

5th April, End of Tax Year.

On the old British calendar the tax year began on 25th March (the old New Year’s Day). In order to ensure against losing revenue it was decided by the British Treasury that the tax year which started on 25th March 1752 would be of the usual length (365 days) and therefore it would end on 4th April, the following tax year beginning on 5th April.
Time passed smoothly and most importantly accurately until 1800. Unfortunately 1800 was not a leap year in the new Gregorian calendar but would have been in the old Julian system. Thus the treasury moved the start of the UK tax year from the 5th to the 6th of April and it has remained there ever since!

 

P11D – Expenses Payments and Benefits

If you’re an employer, use form P11D at the end of the tax year to report expenses and benefits you’ve provided to company directors or to employees earning £8,500 or more. You must also provide a copy to the director or employee.

 

PAYE Real Time

From 6 April 2013 employers started reporting PAYE information to HM Revenue & Customs (HMRC) in real time. You may see this referred to as Real Time Information – or RTI.

This means that employers (or their accountant, bookkeeper or payroll bureau) have to:

  • send details to HMRC every time they pay an employee, on or before the date they pay them
  • use payroll software to send this information electronically as part of their routine payroll process