The new tax year!

Updated on November 7, 2025

April 6th is the start of the new tax year (2025/26), and it runs through to April 5th 2026. If you're self-employed, here’s what this actually means for you, explained simply.

Out with the old

The 2024/25 tax year ended on 5 April 2025. That’s the year you’ll now do a tax return for.

Deadlines:

• Paper return: due by 31 October 2025
• Online return: due by 31 January 2026 (11:59pm)
• Payment deadline: also 31 January 2026
• If you want HMRC to collect your tax through your PAYE tax code: file by 30 December 2025

If you can, consider filing early. It takes the pressure off, you’ll see the exact amount you owe, and you can then plan or save gradually rather than scrambling in January.

If you’d like help, we have a friendly, screenshot-based walkthrough here: How to do your tax return (step-by-step).

In with the new

From 6 April 2025, your income and expenses “reset” — everything you earn or spend now counts toward your 2025/26 tax return.

Your Personal Allowance

The amount you can earn before paying Income Tax stays at £12,570 for 2025/26.

If you ever want to double-check, here is the official page (very clear and up to date): GOV.UK — Income Tax rates & Personal Allowances

National Insurance when self-employed

• Class 2: Most self-employed people now don’t pay Class 2 automatically. If your profits are below the level where Class 2 is treated as paid, you can choose to pay it voluntarily to protect your State Pension record. The voluntary Class 2 rate for 2025/26 is £3.50 per week.
• Class 4: In 2025/26 you’ll pay 6% on profits between £12,570–£50,270, and 2% on profits above £50,270.

If you'd like to confirm those figures, here’s the official page: GOV.UK — Self-employed National Insurance rates

A few small things that make a big difference this year

• Start recording income and expenses from day one. A clean start in April makes your whole year easier.
• If your profit is likely to be low: consider whether paying voluntary Class 2 is worth it for your State Pension record.
• Set a calendar reminder for 31 January now — your future self will thank you.

And if you want to stay on top of things all year (instead of “tax panic” in January) — the SansDrama Web App keeps everything organised. Free 10-day trial, then £3.50/month.

If you’re a recent graduate, your first tax year is free — just send us a message and we’ll sort it.

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