What is the financial year?

Definition of the financial year

The financial year runs from 1st April every year to 31st March in the following year. The financial year applies to limited companies, and other businesses that pay Corporation Tax such as non-incorporated clubs and societies.

HMRC uses the financial year for Corporation Tax - for example, they may change the Corporation Tax rate at the beginning of a new financial year.

Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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