Getting Ready for the Tax Year, Individuals and Payroll Instruction in the UK, Hong Kong and India
Are you ready for the end of tax year? Every country differs, and there are heavy fines for missing deadlines. But no need to worry, this guide will ensure you’re prepared through every step of the process, so make sure to get started today!
UK
In the UK, the tax year ends on April 5.
Firstly, as an employer you must report to Her Majesty’s Revenue & Customs (“HMRC”) and give your employees a P60.
| Date | Action |
|---|---|
| 5 April 2018 | Tax year ends, and deadline to send your final payroll report of the year on or before your employees payday of the tax year |
| 6 April 2018 | First day of the new tax year 2018/19. Update employees payroll records |
| 31 May 2018 | Last day to give P60 form to employees for 2017/18 |
| 6 July 2018 | Deadline to report employees expenses and benefits |
| 31 July 2018 | 2nd payment on account for 2017/2018 tax year deadline |
| 31 October 2017 | (midnight) Paper self-assessment returns deadline for tax year 2017/2018 |
| 30 December 2018 | Online submission deadline for self-assessment tax returns for 2017/2018 for HMRC to collect tax through PAYE tax codes owing less than 3,000 |
| 31 January 2019 (midnight) | Deadline for online self-assessment tax return and for paying tax bill for tax year ending 5 April 2017/18 |
For more general information see our UK payroll guide, for countries looking to hire in the UK without a registered entity see our UK PEO solution.
Hong Kong
In Hong Kong, the tax year ends on March 31.
Every taxpayer is required to notify the Commissioner of Inland Revenue that he/she is chargeable to tax no later than four months after the end of the year of assessment in which he/she is chargeable.
Tax payments are generally made in January and April; the balance of the final tax for the preceding year of assessment and 75 percent of the provisional tax for the current year of assessment are paid in January, with the remaining 25 percent of the provisional tax being paid shortly after the end of the year of assessment, in April.
Hong Kong salaries tax is charged in respect of income arising in or derived from Hong Kong from any office or employment of profit (and any pension). In respect of an employment, to determine the extent of salaries tax payable, it is first necessary to determine whether the income is derived from a Hong Kong-located employment or a non-Hong Kong-located employment.
For more information see our Hong Kong payroll guide
India
In India, the tax year ends on March 31.
If ones taxable income exceeds INR 250,000, one must register with the tax authorities to obtain a Permanent Account Number (PAN) – a unique ten digit identification number provided by the Indian tax authorities.
As proposed in the Finance Bill, 2016, for the FY 2016-17 onwards, advance tax is payable in four installments by individuals as follows:
- 15 percent is payable by 15 June of the tax year
- 45 percent is payable by 15 September of the tax year
- 75 percent is payable by 15 December of the tax year
- 100 percent by 15 March of the tax year
| Date | Action |
|---|---|
| 31 March 2018 | Tax Year Ends |
| 31 July 2018 | Deadline to file income tax for 2017/2018 year |
For more information see our India payroll and benefits guide.
