Questions and Answers
Does the year-end for my business matter if I am self-employed?
I’m setting up a new business and have been asked what my year-end will be. Does it actually matter and, if so, why?
Last updated 28 Jul 2026 | First published 7 Jul 2020
By Helen Wood, CA 1 min read
Self-Assessment Tax Returns
You will need to decide on a year-end date for your business as a sole trader. Most self-employed businesses set their year-end as 5th April to match the income tax year, but it can be at any point in the year e.g. 31st December for the calendar year or the first anniversary of setting up the business.
Usually, it is best to choose a period of the year when you will be best able to finalise your records with your accountant.
However, choosing a year-end closer to the beginning of the tax year usually means it takes longer for increased profits to result in an increased tax bill, creating a cashflow advantage for you. On the other hand, this also means the converse is true: a decrease in profits will take longer to result in a lower tax bill for you.
Your first period for tax will run from the datewhen you began trading until the next 5th April, which is the income tax year-end. Once your business has been up and running for two or three years and, depending on your chosen year-end, you will be taxed each year on the 12 months up to your year-end in each tax year.
For example, if your year-end was 30th June 2026, your profits for 1st July 2025 to 30th June 2026 would be included in your 2026/27 tax return, which must be filed by 31 January 2028.
If you decide to change your year-end, there are also rules to determine the period you will be taxed upon during the transition.
If you need any advice on the best year-end for your business or changing to a new year-end date, contact our team at TaxAssist Accountants by calling 0191 374 1667 or using our online contact form.
Last updated 28 Jul 2026 | First published 7 Jul 2020
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 395 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.