The April 5th tax deadline marks the end of the UK tax year and represents a critical point for contractors to review their tax position. Missing key actions before this date can mean lost allowances, delayed refunds, or unnecessary tax bills.
For contractors working through umbrella companies or PAYE arrangements, April 5th is less about complex filings and more about ensuring records, deductions, and personal tax details are correct before the tax year closes.
1. Review Your Tax Code Before the Tax Year Ends
One of the most important April 5th tax moves for contractors is checking that your tax code is correct.
An incorrect tax code can lead to:
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Overpaid tax
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Reduced take-home pay
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Delays in refunds after year-end
Contractors should log into their HMRC Personal Tax Account to confirm their tax code reflects their current working arrangement.
2. Check Your Payslips for Errors or Inconsistencies
Before April 5th, contractors should review recent payslips carefully.
Key items to check include:
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Tax code shown
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Gross taxable pay
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Tax and National Insurance deductions
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Holiday pay balances
Catching errors before the tax year closes makes corrections far easier. We have another article helping you understand your payslip that you can refer to.
3. Confirm Holiday Pay Has Been Paid or Accrued Correctly
Holiday pay is a frequent source of confusion for umbrella workers.
Before April 5th, contractors should confirm whether:
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Holiday pay has been accrued and is still owed
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Holiday pay has been advanced and already included in pay
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Any unused balance will be paid automatically
Unclaimed holiday pay can be lost if employment ends without clarity.
4. Review Pension Contributions and Allowances
Pension contributions count toward annual allowance limits, which reset after April 5th.
Contractors should:
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Check pension deductions on payslips
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Confirm total contributions for the tax year
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Ensure auto-enrolment deductions are correct
This is especially important for higher earners nearing allowance thresholds.
5. Make Sure HMRC Has Your Latest Employment Details
Contractors who changed roles, agencies, or umbrella companies during the year should ensure HMRC records are up to date.
Missing or outdated employment information can result in:
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Emergency tax codes
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Incorrect tax calculations
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Delayed refunds
HMRC have a dedicated service to ensure telling them about changes is made simple.
6. Prepare for Your P60 After April 5th
After the tax year ends, contractors should expect a P60 from their umbrella company or employer.
Before April 5th, ensure:
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Your contact details are correct
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You know who will issue your P60
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You retain all payslips for reference
The P60 summarises earnings and tax paid and is essential for future checks.
7. Use April 5th as a Compliance Checkpoint
The end of the tax year is also a good time to review umbrella compliance.
Contractors should reflect on:
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Payslip clarity
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Consistency with the Key Information Document
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Transparency of deductions
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Overall communication quality
If concerns exist, switching umbrellas before the new tax year can simplify matters.
Final Thoughts
The April 5th deadline is not just a date on the calendar — it is a valuable opportunity for contractors to protect their income, correct issues early, and start the new tax year with confidence.
By making a few essential checks before the tax year ends, contractors can avoid unnecessary problems and ensure they remain fully compliant moving into the next tax year. If you need help finding a compliant and capable payroll provider, you can look into our Top 10 Umbrella Companies for some guidance.
