The tax year of UK influences reporting of income and claiming tax allowance by businesses and individuals. To individuals, it dictates when taxes are allowed and when and how Self Assessment returns should be made together with payments. To companies, it directs the financial planning as well as corporation tax returns. Knowing the tax year is important so that one gives tax documents at the right time and avoids penalty charges, and enjoy tax-free allowances. It assists in organizing your financial year on the basis of compliance to UK taxation.